1. Analyze and classify product and period costs. 2. Develop a Schedule of COGM, Schedule of COGS, and an Income Statement for a manufacturing company. 3. Develop comparison charts. 4. Evaluate the costs of the production and operations.

Below are the cost and sales data for Fog Inc. for the month of August. Purchases of raw materials $80,000 Raw materials inventory, beginning $10,000 Raw materials inventory, ending $12,000 Depreciation, factory $3,000 Indirect material $8,000 Insurance, factory $5,000 Direct Labor $60,000 Maintenance, factory $4,000 Administrative expenses $50,000 Sales revenue $300,000 Utilities, factory $5,000 Supplies, factory $1,000 Selling expenses $40,000 Work in process inventory, beginning $7,000 Work in process inventory, ending $11,000 Finished goods inventory, beginning $9,000 Finished goods inventory, ending $8,000 Income tax Expense Rate 33% Requirement #1: Use the information in the data given above to complete the Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and Income Statement. I have set up a separate worksheets for you to develop your statements. Look at the sheet tabs COGM, COGS, and IS.

Requirement #2: Answer the following questions on the COGM Worksheet where I have set up these questions below the statement. Assume the company produced 10,000 units during the month. 1. What was the average cost per unit for direct materials used? 2. What was the average cost per unit for Depreciation, factory? What if the company expects to produce 15,000 units of product during the coming month. 3. What would be the average cost per unit for direct materials used, assuming this cost is a variable cost? 4. What would be the average cost per unit for Depreciation, factory, if depreciation is a fixed cost? 5. Compare your results for 10,000 and 15,000 units and explain the similarities and differences in your results.

Requirement #3: Prepare 2 pie charts. 1. One pie chart compares the 3 types of product costs used in production. 2. One pie chart compares the total product cost used in production to the total period cost incurred during the month.