Income Statement, Direct and Indirect Cost Concepts, Service Company Lakesha Barnett owns and operates a package mailing store in a college town. Her store, Send It Packing, helos customers wrap items and send them v UPS, FedEx, and the USPS. Send It Packing also rents mailboxes to customers by the month. In May, purchases of materials (stamps, cardboard boxes, tape, Styrofoam peanuts, bubble wrap, etc.) equaled 511,350; the beginning inventory of materials was $1,050, and the ending inventory of materials was $950. Payments for direct labor during the month totaled $25,500 Overhead incurred was 518,200 (including rent utilities, and insurance, as well as payments of $14,050 to UPS and FedEx for the delivery services sold). Since Send It Packing franchise, Lakeesha owes a monthly franchise fee of 5 percent of sales. She spent $2,750 on advertising during the month other administrative costs (including accounting and legal services and a trip to Dallas for training) amounted to $3,600 for the month Revenues for Play were $104,000 Required: 1. What was the cost of materials used for packaging and maling services during May? 2. What was the prime cost for May? 3. What was the conversion cost for May? a. What was the total cost of services for May? 5. Prepare an income statement for May. Send it Packing Required: 1. What was the cost of materials used for packaging and mailing services during May? 2. What was the prime cost for May? 3. What was the conversion cost for May? 4. What was the total cost of services for May? 5. Prepare an income statement for May Send it Packing Income Statement For the Month Ended May 31 Operating expenses For the Month Ended May 31 Operating expenses: DIJ VII > 6. Of the overhead incurred, is any of it direct? Of the overhead incurred, is any of it indirect