Assignment 3 problems: Part 2

Lester-Sung,Inc. is a large general construction firm in the commercial building industry. The following is a list of costs incurred by this company: The cost of a laborer for 8 hours at $6.00 an hour. (direct labor)

The cost of insurance for the capenters. (overhead cost) The cost of 1,000 board feet of 2x4 lumber (direct material Cost)

The CEO's salary.(selling and administrave cost)

Classify each cost above using the following categories: Selling and administrative cost

Direct material

Direct labor

Overhead cost

Question: are the answer I selected in the parenthesis correct?

Part 3 The following information applies to the Johnson Tools Company for the year ended December 31, 2008

Factory Rent $330,000 Direct Materials Inventory, Beginning 96,000 Direct Materials Inventory, Ending 87,000 Direct Materials Purchases 654,000 Direct Labor