Archambeau 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.
-Metal brackets for drawers

Question

Quizplus · Accepted Answer

Metal brackets for drawers are direct materials that can be directly traced to the finished furniture, making them appropriate for cost tracing.

Archambeau Products Company Manufactures Office Furniture