Berry Company is an architectural firm located in Detroit, Michigan. The company works with small and medium-size construction businesses to prepare building plans according to the client's contract. The following data are provided for the previous year:

Number of designs completed and sold	700 designs
Beginning inventory of direct materials	$20,000
Beginning inventory of designs in process	60,000
Ending inventory of direct materials	10,000
Ending inventory of designs in process	100,000
Purchases, direct materials	40,000
Direct labor	800,000
Manufacturing overhead	100,000
Administrative expense	150,000
Selling expense	60,000
Beginning inventory of finished designs	300,000
Ending inventory of finished designs	280,000

	Required:
1.	Calculate the cost of goods manufactured.
2.	Calculate the cost of goods sold.
3.	Assume that the average fee for a design is $2,100. Prepare an income statement for Berry.
4.	CONCEPTUAL CONNECTION: Refer to the cost of goods sold (calculated in Requirement 2). What is the dominant cost? Briefly explain why this cost is the dominant one for Berry.