At the beginning of August 2001, Brennan Corporation had the following account balances:
$$
\begin{array}{lr}
\text { Raw Materials Inventory (both direct and indirect) } & \$ 8,000 \\
\text { Work in Process Inventory } & 13,000 \\
\text { Finished Goods Inventory } & 5,000
\end{array}
$$
During August, the following transactions took place.
1. Raw materials were purchased on account, $$\$ 75,000$$.
2. Direct materials $$(\$ 21,200)$$ and indirect materials $$(\$ 2,500)$$ were issued to production.
3. Factory payroll consisted of $$\$ 50,000$$ for direct labor employees and $$\$ 7,000$$ for indirect labor employees.
4. Office salaries totaled $$\$ 21,100$$ for the month.
5. Utilities of $$\$ 8,700$$ were accrued; 70 percent of the utilities cost is for the factory area.
6. Depreciation of $$\$ 9,000$$ was recorded on plant assets; 80 percent of the depreciation is related to factory machinery and equipment.
7. Rent of $$\$ 12,000$$ was paid on the building. The factory occupies 60 percent of the building.
8. At the end of August, the Work in Process Inventory balance was $$\$ 8,300$$.
9. At the end of August, the balance in Finished Goods Inventory was $$\$ 8,900$$. Brennan uses an actual cost system and debits actual overhead costs incurred to Work in Process.
a. Determine the total amount of product cost (cost of goods manufactured) and period cost incurred during August 2001.
b. Compute the cost of goods sold for August 2001.
c. What level of August sales would have generated net income of $$\$ 27,700$$ ?