2. Benedetto Fallica is a manufacturer of fashionable clothing. He hired Nadim Youkim as his CFO 5 years ago. Nadim has been happily working at the company for the past 7 years. Nadim has recently been asked by Benedetto to assess the following manufacturing records from the manufacture of the new clothing line with sales of $2,550,000 Beginning Direct Materials Inventory Direct Materials Purchased Beginning Work in Progress Inventory Beginning Finished Goods Inventory Wages paid for direct labourers Wages paid to factory supervisors President's Salary Head office salary costs Wages paid for Indirect Labour Advertising and marketing expenses Electricity used in plant Overhead supplies used in plant Marketing Manager wages Fuel purchased for delivery trucks Oil for factory heating Depreciation on factory equipment Property Tax for the factory Rent paid for head office Rent paid for factory equipment Ending Direct Materials Inventory Ending Work in Progress Inventory Ending Finished Goods Inventory $45,000 $756,000 $58,500 $175,600 $456,000 $234,000 $450,000 $350,000 $23,450 $356,000 $130,000 $23,500 $125,000 $35,600 $87,000 $86,000 $32,000 $75,000 $34,000 $24,500 $102,000 $164,300 Required (16 marks) a) Calculate the cost of Goods Manufactured for the year (8 marks) b) Calculate the cost of Goods Sold (2 marks) c) Calculate Operating Income (2 marks) d) Compute the prime costs and the conversion costs (2 marks) e) Based on your results comment on what is happening at the plant, why is the division getting the results you have calculated? (2 marks)