THERE ARE TWO PARTS TO THIS QUESTION PLEASE ANSWER EVERYTHING Compute Cost of Goods Manufactured and Cost of Goods Sold $($

Learning Objective $5)$

Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described next. Assume that the Raw Materials Inventory contains only direct materials.

Beginning of Year End of Year End of Year

Raw materials inventory $$23,000$ $$25,000$ Insurance on plant $ $11,500$

Work in process inventory $$35,000$ $$31,000$ Depreciation$$plant building and equipment $ $13,400$

Finished goods inventory $$20,000$ $$22,000$ Repairs and maintenance$$plant $ $3,700$

Purchases of direct materials $$74,000$ Marketing expenses $ $77,000$

Direct labor $$86,000$ General and administrative expenses $ $28,500$

Indirect labor $$42,000$

E$2-27$A Continues E$2-26$A: Prepare income statement $($Learning Objective $5)$

Prepare the income statement for West Nautical Company in E$2-26$A for the most recent year. Assume that the company sold $34,000$ units of its product at a price of $$12$ each during the year.

E$2-28$A Determine whether information is relevant $($Learning Objective $6)$

Classify each of the following costs as relevant or irrelevant to the decision at hand and briefly explain your reason.

The fair market value of old manufacturing equipment when deciding whether to replace it with new equipment $($old equipment will be sold if new equipment is purchased$)$

Cost of purchasing packaging materials from an outside vendor when deciding whether to continue manufacturing the packaging materials in$-$house

Depreciation expense on old manufacturing equipment when deciding whether to replace it with newer equipment

The total amount of the restaurant$$s fixed costs when deciding whether to add additional items to the menu

The cost of land purchased three years ago when deciding whether to build on the land now or wait two more years before building

The interest rate received on invested funds when deciding how much inventory to keep on hand

Cost of computers purchased six months ago when deciding whether to upgrade to computers with a faster processing speed

The property tax rates in different locales when deciding where to locate the company$$s headquarters

The type of fuel $($gas or diesel$)$ used by delivery vans when deciding which make and model of van to purchase for the company$$s delivery van fleet

Cost of operating automated production machinery versus the cost of direct labor when deciding whether to automate production