The glue and nails used in a manufacturing process should be included in which cost?

The glue and nails used in a manufacturing process are classified as manufacturing overhead costs because they are necessary supplies that support the production process but are not significant enough to be classified as direct materials. Manufacturing overhead includes all indirect costs that are incurred in the production process, which cannot be directly traced to a specific product. This includes items like glue and nails that are essential for assembling products but are not the main raw materials.

Direct materials, on the other hand, consist of the primary inputs that are directly incorporated into the finished product. While glue and nails contribute to the final product, they do not represent the main materials that define the product's identity. Therefore, they are more appropriately categorized under manufacturing overhead, as they facilitate the manufacturing process without being primary components.