2. Pearl Industries manufactures office furniture. The company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each
2. Pearl Industries manufactures office furniture. The company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (A) cost tracing to the finished furniture (B) cost allocation of an indirect manufacturing cost to the finished furniture, or (C) as a non manufacturing item.
Item (A) (B) (C)
Carpenter wages ________ ________ ________
Depreciation- office building ________ ________ ________
Glue for assembly ________ ________ ________
Lathe department supervisor ________ ________ ________
Lathe depreciation ________ ________ ________
Lathe maintenance ________ ________ ________
Lathe operator wages ________ ________ ________
Lumber ________ ________ ________
Samples for trade shows ________ ________ ________
Metal brackets for drawers ________ ________ ________
Factory washroom supplies ________ ________ ________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started