Manufacturing Cost Exercises: Ex1: The following costs are incurred in a typical manufacturing company. For each item, insert the type of cost in Column 1. Insert whether the cost is recorded in the manufacturing statement or income statement in Column 2. Use these abbreviations Column 1: DM=DirectmaterialDL=DirectlaborColumn2:1=Manufacturingstatement2=IncomeStatement MO= Manufacturing overhead PC= Period Cost 1. Lubricants paid for factory machinery 2. Leather used in making shoes 3. Transport cost on direct materials purchased 4. Factory manager's salary 5. Salary for workers painting the dining table 6. Hazard insurance on factory 7. Production supervisor's salary 8. Factory supplies used 9. Telephone cost for human resources department 10. Transport cost to ship goods to customers Ex2: The following items represent costs incurred by Ebtisam Company which produce chocolate. Column 1: Column 2: DM = Direct material 1 = Manufacturing statement DL= Direct labor 2= Income Statement MO= Manufacturing overhead PC= period cost Column Column 1. Depreciation on the factory building 2. Salary of the workers who pack the chocolate. 3. Nuts, raisins and almond use in chocolate 4. Rent on the sales office 5. Salary of factory supervisor 6. Insurance on factory building 7. Company president's salary 8. Sugar use in making the chocolate. 9. Depreciation on delivery truck. 10. Utility bills on administration building Column 1: Column 2: DM= Direct material 1= Manufacturing statement DL= Direct labor 2= Income Statement MO= Manufacturing overhead PC= period cost \begin{tabular}{ccc} Column & Column \\ 1 & 1. Wet tissue and ketchup \\ \hline \end{tabular} 2. Salary of the workers cutting and baking the chicken. 3. Depreciation expenses on factory machines. 4. Salary of production supervisor. 5. Chicken and flour. 6. Rent on the restaurants. 7. Factory maintenance salary 8. Insurance on factory building. 9. Delivery expenses. 10. Utilities expenses for the restaurants