ACCT 203 Exam “1A” I. Cost Classifications:Fleet Company manufactures shoes. Label each item as to the type of cost:DM, DL, MO or P(direct material, direct labor, mfg overhead or period cost) _DL__1. Cost of wages of workers who assemble the shoes. __2. Depreciation on the factory in which the shoes are built. __3. The cost of leather used in the shoes. ___4. Wages of the cleanup crew at the factory. ___5. Research costs for a new type of shoe under development. _MO__6. Depreciation on the sewing machines in the factory. _MO__7. Indirect materials such as shoe polish, used to condition the leather. _MO__8. Factory supervisor’s salary. _MO__9. Salary of the night watchman at the factory. _MO__10. Depreciation on the robotic machine used to build the shoe boxes. _e__11. Direct Materials cost is debited to: a. Raw Materials Inventory b. Manufacturing Overhead c. Cost of Goods Sold d. Direct Materials e. Work in Process _c__12. Beginning Finished Goods Inventory + X – Ending Finished Goods Inventory = Cost of Goods Sold. What is X? a. Direct Materials b. Manufacturing Overhead c.
