Carpenter Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories

Categorize each of the following items as being appropriate for (1 ) cost tracing to the finished furniture, (2 ) cost allocation of an indirect manufacturing cost to the finished furniture, or (3 ) as a nonmanufacturing item.

Item Cost Cost Nonmanu-
Tracing Allocation facturing
Carpenter wages ________ ________ ________
Depreciation — office building ________ ________ ________
Glue for assembly ________ ________ ________
Lathe-department supervisor ________ ________ ________
Lathe depreciation ________ ________ ________
Lathe maintenance ________ ________ ________
Lathe operator wages ________ ________ ________
Lumber ________ ________ ________
Samples for trade shows ________ ________ ________
Metal brackets for drawers ________ ________ ________
Factory washroom supplies ________ ________ ________
Fill in the blanks with correct word

Carpenter wages X
Depreciation-office building X
Glue for assembly X
Lathe-department supervisor X
Lathe depreciation X
Lathe maintenance X
Lathe operator wages X
Lumber X
Samples for trade shows X
Metal brackets for drawers X
Factory washroom supplies X

Business

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