Felix's Fine Jewelry produces fine jewelry for department stores. The following costs incurred by the company may be classified as direct materials, direct labor, manufacturing overhead, or period costs.

Classify the costs and total by classification.

Prepare an operating income statement which shows the deductions of expense in terms of total classification by category: direct materials, direct labor, manufacturing overhead, or period costs. Assume Felix's Fine Jewelry's revenue for the period was $8,000,000, and there is no change in ending inventory.

a.	Wages paid to jewelry workers	$1,200,000
b.	Utilities in the administrative area	300,000
c.	Depreciation on chain linking machinery utilized in the plant	200,000
d.	Silver, gold, and gemstones used in producing necklaces	4,000,000
e.	Company attorney's salary	150,000
f.	Lease rental charge on forklift for material and finished goods handling	10,000
g.	Telephone expense for customer service office	20,000
h.	Wages of plant heating and cooling technicians	100,000
i.	Utilities for the assembly area of the plant	250,000
j.	Temporary administrative assistant help	1,500
k.	Salary paid to the CEO	200,000
l.	Environmental waste disposal fines	1,000,000
m.	Signature red jewelry boxes used for packaging	50,000
n.	Expedited freight of product to major customer	50,000