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• JOJO Company is a metal- and woodcutting manufacturer, selling products to the home construction market. Consider the following data for 2011: (6 MARKS)

Sandpaper $ 2,000

Materials-handling costs 70,000

Lubricants and coolants 5,000

Miscellaneous indirect manufacturing labor 40,000

Direct manufacturing labor 300,000

Direct materials inventory Jan. 1, 2011 40,000

Direct materials inventory Dec. 31, 2011 50,000

Finished goods inventory Jan. 1, 2011 100,000

Finished goods inventory Dec. 31, 2011 150,000

Work-in-process inventory Jan. 1, 2011 10,000

Work-in-process inventory Dec. 31, 2011 14,000

Plant-leasing costs 54,000

Depreciationplant equipment 36,000

Property taxes on plant equipment 4,000

Fire insurance on plant equipment 3,000

Direct materials purchased 460,000

Revenues 1,360,000

Marketing promotions 60,000

Marketing salaries 100,000

Distribution costs 70,000

Customer-service costs 100,000

• Prepare an income statement with a separate supporting schedule of cost of goods Required manufactured. For all manufacturing items, classify costs as direct costs or indirect costs and indicate by V or F whether each is basically a variable cost or a fixed cost (when the cost object is a product unit). If in doubt, decide on the basis of whether the total cost will change substantially over a wide range of units produced.