Santana Rey, owner of Business Solutions, decides to diversify her business by a

Question

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.

Classify the following manufacturing costs of Business Solutions by behavior and traceability.

Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Explanation / Answer

1 Product costs Cost by behaviour Cost by Traceability Monthly flat fee to clean workshop Fixed Indirect Laminate coverings for desktops Variable Direct Taxes on assembly workshop Fixed Indirect Glue to assemble workstation component parts Variable Indirect Wages of desk assembler Variable Direct Electricity for workshop Variable Indirect Depreciation on tools Fixed Indirect 2 Manufacturing statement Direct materials 2300 Direct labor 900 Factory overhead 480 Total manufacturing cost 3680 Add: Beginning goods in process 0 3680 Less: Ending goods in process 580 Cost of goods manufactured 3100 3 Partial income statement Cost of goods manufactured 3100 Add: beginning finished goods inventory 0 3100 Less: Ending finished goods inventory 330 Cost of goods sold 2770

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