2. Prepare an income statement for the year ended December 31, 2014. Problem 2. Company XYX produces video games. They provide you with the following information. (The Marvelous Company produces video games. The following information is provided):

Materials used	$113,000
Advertising	25,000
Insurance, factory	15,000
Administrative salaries	30,000
Property taxes, factory	11,000
Utilities, office building	17,000
Factory labor	45,000
Sales commissions	31,000
Factory supervisors salary	35,000
Research and development	14,000
Depreciation, factory	11,000
Depreciation, office	9,000
Indirect materials	12,000

Required: a) Classify each of the costs as: (Classify each of the company's costs as): i. period costs (general, selling, and administrative) or as - period cost (general, selling, and administrative cost) or as ii. direct or indirect product cost. iii. Write the dollar amount of the cost in the appropriate column. Enter the dollar amount of the cost in the appropriate column. b) After entering all amounts, After entering all amounts i. calculate the total period cost (total period cost) ii. calculate total direct product cost (total direct product cost) iii. Calculate the total indirect product cost.

Item	Period Cost	Direct Product Cost	Indirect Product Cost
Materials used
Advertising
Insurance, factory
Administrative salaries
Property taxes, factory
Utilities, office building
Factory labor
Sales commissions
Factory supervisors salary
Research and development
Depreciation, factory
Depreciation, office
Indirect materials
Total