1. Classify the following cost for making a bicycle

• Tires
• Factory rent
• Factory light and heat
• Brakes
• Pedals
• Bike maker wages
• Chains
• Factory accounting
• Frames
• Insurance on factory
• Factory manager salary
• Seat
• Handlebars

Direct Costs (for bicycle)	Indirect Costs (for bicycle)

1. cost classification

Identify the following costs as direct material, direct labor, or factory overhead for a baseball glove manufacturer.

• Leather used to make a baseball glove
• Coolants for the machines that sew the baseball gloves
• Wages of assembly line employees
• Ink used to print a players autograph on a baseball glove

Cost	Classification
Leather used to make a baseball glove
Coolants for the machines that sew the baseball gloves
Wages of assembly line employees
Ink used to print a players autograph on a baseball glove

1. Preparing the schedule of cost of goods manufactured

. Direct Material 2. Direct labor 3. Factory Overhead 4. Work in process

• Beginning raw materials inventory Raw materials available for use
• Beginning work in process indirect labor
• Beginning finish goods inventory Factory utilities
• Raw materials purchased Ending work in process
• Depreciation expense Direct labor used
• Factory Rent Ending finished goods inventory
• Ending raw materials inventory

Direct Material	Direct Labor	Factory Overhead	Work in Process