Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
Question:
Required
1. Classify the following manufacturing costs of Business Solutions by behavior and traceability.
2. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. Assume the following manufacturing costs:
Direct materials: $2,200
Factory overhead: $490
Direct labor: $900
Beginning goods in process: none (December 31, 2011)
Ending goods in process: $540 (January 31, 2012)
Beginning finished goods inventory: none (December 31, 2011)
Ending finished goods inventory: $350 (January 31, 2012)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31,2012.
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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