Santana rey, owner of business solutions

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.

 

 

 

 

 

Product Costs

 

 

Costs by Behavior

 

 

Costs by Traceability

 

 

Variable

 

 

Fixed Direct

 

 

Indirect

 

 

 

 

 

1. Monthly flat fee to clean workshop

 

 

2. Laminate coverings for desktops

 

 

3. Taxes on assembly workshop

 

 

4. Glue to assemble workstation component parts

 

 

5. Wages of desk assembler

 

 

6. Electricity for workshops

 

 

7. Depreciation on tools

 

 

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. Preparing the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012.

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