Question: Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
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(PIS) for Business Solutions for the month ended January 31, 2012.