mtana Rey, owner of Business Solutions, diversifies her business by also manufacturing computer workstation furniture.
quired:
1. Classify the following manufacturing costs of Business Solutions as either direct or indirect.
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2022. Assume the
following manufacturing costs.
Work in process inventory, beginning
Work in process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
Direct materials used
Direct labor
Factory overhead
$\ 0
$\ 560
$\ 320
$\ 2,300
$\ 1,000
$\ 510
3. Refer to the data in part 2 and prepare the cost of goods sold section of a partial income statement for Business Solutions for the
month ended January 31, 2022.
efer to the data in part 2 and prepare the cost of goods sold section of a partial income statement for Business Solutions for
the month ended January 31, 2022.
BUSINESS SOLUTIONS
Partial Income Statement
For Month Ended January 31, 2022
Cost of goods sold
Goods available for sale
Cost of goods sold
epare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2022.
BUSINESS SOLUTIONS
Schedule of Cost of Goods Manufactured
For Month Ended January 31, 2022
Total manufacturing costs
Total cost of goods in process
Cost of goods manufactured
Classify the following manufacturing costs of Business Solutions as either direct or indirect.
Product Costs
1. Monthly fee to clean workshop
2. Laminate coverings for desktops
3. Taxes on assembly workshop
4. Glue to assemble workstation components
5. Wages of desk assembler
6. Electricity for workshop
7. Depreciation on manufacturing tools
Cost by Traceability
