An analysis sheet for Gutman’s Gutters, a firm that manufactures aluminum and steel gutters, is included in the Working Papers. Your instructor will guide you through the following examples.

1. For each of the following costs, determine whether the cost should be classified as direct materials, direct labor, or factory overhead.

2. Specify the subsidiary ledger (materials ledger, cost ledger, finished goods ledger) in which the cost is first recorded. 

a. Wages earned by an employee working on the production of gutters.

b. Aluminum used in the production of gutters.

c. The rent expense of the factory in which the gutters are made.

d. A cleaning solvent used to clean production machinery.