Exercise 11-2A Materials and compensation costs in manufacturing versus service companies LO 11-1 Finch Company started year 1 with $150,000 in its cash and common stock accounts. During year 1, Finch paid $112,500 cash for employee compensation and $34,500 cash for materials. Required a. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Finch used the labor and materials to make 1,500 chairs. Further, assume that Finch sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement. b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Finch used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement