Given the following data:

Administrative costs $40,000

Building depreciation (80% for plant) 30,000

Property, plant and equipment 150,000

Indirect materials and supplies 4,000

Sales commissions 15,000

Accounts receivable 15,000

Direct materials inventory, Jan 1 14,000

Direct labor 35,000

Direct materials inventory, Dec 31 17,000

Finished goods inventory, Jan 1 7,000

Finished goods inventory, Dec 31 8,000

Materials purchases 27,000

Accounts payable 12,000

Work in process inventory, Dec 31 12,000

Supervisory and indirect labor 12,000

Property taxes (80% for plant) 10,000

Utilities and power (90% for plant) 30,000

Work in process inventory, Jan 1 8,000

Sales revenue 250,000

Required:

a) Determine the cost of goods manufactured, the gross profit, and the operating income.

b) From the above list identify, what might be a product cost and what might be a period cost.

c) Explain the terms, cost object and cost driver.