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Direct or indirect

Exercise and reference answers

Upper category
Direct
Lower category
Indirect
Items
  1. Category
    Direct
    Item
    Chair wood
  2. Category
    Direct
    Item
    Assembler
  3. Category
    Direct
    Item
    Deck wood
  4. Category
    Direct
    Item
    Carpenter
  5. Category
    Indirect
    Item
    Glue
  6. Category
    Indirect
    Item
    Nails
  7. Category
    Indirect
    Item
    Supervisor
  8. Category
    Indirect
    Item
    Cleaner
Instructions
Send each cost to the direct track or the indirect track.

Explanation

_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
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