Classifying Cost of Production

A factory manufactures jelly. The jars of jelly are packed six to a box, and the boxes are sold to grocery stores. The following types of cost were incurred:

Cost Cost

Jars Receptionist's wages

Sugar Telephone

Fruit Utilities

Pectin $($thickener used in jams and jellies$)$ Rental of Santa Claus suit $($for Christmas

Boxes party for children of factory workers$)$

Depreciation on the factory building Supervisory labor salaries

Cooking equipment operators' wages Insurance on factory building

Filling equipment operators' wages Depreciation on factory equipment

Packers' wages Oil to lubricate filling equipment

Janitors' wages

Required:

Classify each of the costs as direct materials, direct labor, or overhead. The row for "Jars" is filled in as an example.

Costs Classification

Jars Direct Materials

Sugar

Fruit

Pectin

Boxes

Depreciation on the factory building

Cooking equipment operators' wages

Filling equipment operators' wages

Packers' wages

Janitors' wages

Receptionist's wages

Telephone

Utilities

Rental of Santa Claus suit

Supervisory labor salaries

Insurance on factory building

Depreciation on factory equipment

Oil to lubricate filling equipment

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