Direct and Indirect Materials in Production


Direct and Indirect Materials in Production Assignment

What are the direct and indirect materials used in production for a loaf of bread?

Assume:

  1. Production will be in your personal kitchen or workshop, therefore no rent expense will be incurred.
  2. Use the fixed amount of $100 per month for the additional utility expense that will be incurred in the production of your product.
  3. No additional major machinery/equipment will need to be purchased. Small tools and equipment such as hammers or cookie sheets may be lumped together. They will be considered to have a limited one year life with no salvage value.
  4. The federal minimum wage should be used as the labor cost per hour.
  5. Assume no indirect labor. Get Accounting homework help today with HelpHub 

× How can I help you?