Classifying costs of a manufacturer
This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 15-34 of Chapter 15. Lawlor is considering manufacturing a weed eater. Lawlor expects to incur the following manufacturing costs:
Shaft and handle of weed eater.
Motor of weed eater.
Factory labor for workers assembling weed eaters.
Nylon thread used by the weed eater (not traced to the job by Lawlor).
Glue to hold housing together.
Plant janitorial wages.
Depreciation on factory equipment.
Rent on plant.
Sales commission expense.
Administrative salaries
Plant utilities.
Shipping costs to deliver finished weed eaters to customers.
Requirement
1. Classify each cost as either direct materials, direct labor, factory overhead, or period costs.