1. Classify each of the items above using the following code: (A) direct materials; (B) direct labor; (C) manufacturing overhead; or (D) period cost.2. Determine the total product cost and the total period cost. 5) The comparative statements of QRS Company are presented here.QRS CompanyIncome StatementsFor the Years Ended December 3120202019 4Net sales $1,890,540 $1,750,500Costs of goods sold1,058,5401,006,000Gross profit 832,000 744,500Selling and administrative expenses 500,000 479,000Income from operations 332,000 265,500Other expenses and lossesInterest expense 22,000 20,000Income before income taxes 310,000 245,500Income tax expense 92,000 73,000Net income $ 218,000 $ 172,500QRS CompanyBalance Sheets December 3120202019AssetsCurrent assetsCash $ 60,100 $ 64,200Debt Investments (short-term)74,00050,000Accounts receivable 117,800 102,800Inventory 126,000 115,500Total current assets 377,900 332,500Plant assets (net) 649,000 520,300Total assets $1,026,900 $ 852,800Liabilities and Stockholders Equity20202019Current liabilitiesAccounts payable $ 160,000 $ 145,400Income tax payable43,500 42,000Total current liabilities 203,500187,400Bonds payable 220,000200,000Total liabilities423,500387,400 Stockholders equity Common stock ($5 par)290,000300,000Retained earnings313,400165,400Total stockholders equity603,400465,400Total liabilities and stockholders equity $1,026,900 $852,800All sales were on account. Net cash provided by operating activities for 2020 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000.Instructions:Compute the following ratios for 2020.1. Earnings per share.2. Return on common stockholders equity.3. Return on assets.4. Current ratio.5. Accounts receivable turnover.6. Average collection period.7. Inventory turnover.8. Days in inventory.9. Asset turnover.10.Debt to assets ratio.