E1-5 Elder Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are below. The company intends to classify these costs and expenses into categories. Match the Cost and Expenses with the appropriate Category.
Associate each cost/expense with each association category:
Cost and Expenses Association Categories
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 line.
10. Salaries for the night security guards for the factory building.
Categories:
a. Direct materials
b. Direct labor
c. Manufacturing overhead
d. Period costs
Click here for the solution: Elder Company is a manufacturer of personal computers
