Wood screws and glue used in the production of a product are production costs. Full absorption costing, which means all production costs are allocated to units produced, is required by U.S. GAAP and the the U.S. income tax authorities. Therefore, they cannot be expensed as period costs.
Wood screws and glue used in the production of a product would not be classified as direct labor, because they are not direct labor.
Wood screws and glue used in the production of a product would be classified as factory overhead, probably as variable factory overhead. Factory overhead includes production and operation costs that a company cannot trace to any specific product or unit of a product. Because these costs are incurred and paid for by the company and are necessary for the production process, it is essential that the company know what these costs are and allocate them to the different products that are produced. This must occur so that the full costs of production and operation are known in order to set the selling prices for the different products. Furthermore, full absorption costing, which means all production costs are allocated to units produced, is required by U.S. GAAP for external reporting and on income tax returns by the U.S. internal revenue income tax authorities.
Wood screws and glue used in the production of a production are not direct materials, because their use cannot be traced to any specific product or unit of a product.
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