Timi Company manufactures pens for schools. Summary data (in thousands) for the year ended December 31, 2019, are as follows:

Required

1. For each cost item (A–I) from the records, identify the direct and indirect costs
2. Compute Timi Company’s total indirect manufacturing cost and explain the reason for excluding any  item.

Transcribed Image Text:

Cost Items A. Ink for pens B. Depreciation of delivery vehicles C. Depreciation of factory machine D. Interest expense E. F. Wages of factory staff G. Salary of supervisors H. Machine maintenance costs I. Plastics for pens Salary of general manager £ 600 £ 4,000 £ 8,500 £ 1,500 £24,000 £ 5,000 £ 2,500 £ 350 £10,000