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

$400,000

Utilities, factory

$6,000

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

35%

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.
	Use exhibit 2-7 on pages 45-46 as your model .
	You should not type any number into a cell on any of the statements.
	If I would change a number in your data field above it would automatically change on the statements.
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. I have a tutorial in the chapter 2 folder in course documents to assist you and developing a chart.
	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.
	Insert these charts on separate sheets and comment on your chart results on the comment worksheet.