Exercise 11-2A (Algo) Materials and compensation costs in manufacturing versus service companies LO 11-1 Gibson Company started year 1 with $180,000 in its cash and common stock accounts. During year 1 , Gibson paid $135,000 cash or employee compensation and $41,400 cash for materials. Required a. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to make 1,500 chairs. Further, assume that Gibson sold 1,200 of the chairs it made. State the name of the expense account(s) shown on the income statement. o. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on the income statement. Complete this question by entering your answers in the tabs below. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to make 1,500 chairs. Further, assume that Gibson sold 1,200 of the chairs it made. State the name(s) of the expense account shown on the income statement. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Gibson used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account shown on the income statement