Managerial Accounting: E19-5 Sota Company is a manufacturer of personal computers
Managerial Accounting E19-5 Sota Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.
Instructions For each item, indicate the cost category to which it belongs. 1. Property taxes on the factory building. 2. Production superintendents' salaries. 3. Memory boards and chips used in assembling computers. 4. Depreciation on the factory equipment. 5. Salaries for assembly line quality control inspectors. 6. Sales commissions paid to sell personal computers. 7. Electrical components used in assembling computers. 8. Wages of workers assembling personal computers. 9. Soldering materials used on factory assembly lines. 10. Salaries for the night security guards for the factory building.