Packing Labor will be Direct Labor or Indirect Labor

Question

Hello

Our company manufacture Bearings. When bearing convert into a finished product, we pack every bearing into a box. My question is Packing Labor will be Direct Labor or Indirect Labor.

Thanks

Answer 1

Since the packing the product occurs after the product is completed, I would consider this a period cost rather than a product cost.

Product cost = direct materials, direct labor, manufacturing overhead (indirect costs).