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 as (a) variable or fixed and (b) direct or indirect. 2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,900 Factory overhead: $470 Direct labor: $1,100 Beginning work in process: none (December 31, 2019) Ending work in process: $580 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $390 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020.

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 as (a) variable or fixed and (b) direct or indirect. 2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,900 Factory overhead: $470 Direct labor: $1,100 Beginning work in process: none (December 31, 2019) Ending work in process: $580 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $390 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...

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