Morland Company started year $1$ with $$75,000$ in its cash and common stock accounts. During year $1,$ Morland paid $$50,000$ cash for employee compensation and $$17,500$ cash for materials.

Required

Determine the total amount of assets and the amount of expense shown on the year $1$ financial statements assuming Morland used the labor and materials to make $1,500$ chairs. Further, assume that Morland sold $1,200$ of the chairs it made. State the name of the expense account$($s$)$ shown on the income statement.

Determine the total amount of assets and the amount of expense shown on the year $1$ financial statements assuming Morland used the labor and materials to provide dental cleaning services to $500$ patients. State the name of the expense account$($s$)$ shown on the income statement.