Berry Company is an architectural firm located in Detroit, Michigan. The company works with small and medium-size construction businesses to prepare building plans according to the client's contract. The following data are provided for the previous year:

Required:
1. Calculate the cost of goods manufactured.
2. Calculate the cost of goods sold.
3. Assume that the average fee for a design is $2,100. Prepare an income statement for Berry.
4. Conceptual Connection: Refer to the cost of goods sold (calculated in Requirement 2). What is the dominant cost? Briefly explain why this cost is the dominant one for Berry.

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40,000 800,000 100,000 150,000 60,000 Number of designs completed and Purchases, direct materials Direct labor Manufacturing overhead Admini strative expense Selling expense Beginning inventory of finished sold Beginning inventory of direct 700 $ 20,000 60,000 materials Beginning inventory of designs in process Ending inventbry of direct materials Ending inventory of designs in 10,000 designs 300,000 Ending inventory of finished process 100,000 designs 280,000