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More info Old Wine Manufacturing classifies all costs directly related to the manufacturing of its product as product costs. These costs are inventoried and later

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More info Old Wine Manufacturing classifies all costs directly related to the manufacturing of its product as product costs. These costs are inventoried and later expensed as costs of goods sold when the product is sold. All other expenses, including finished goods warehousing costs of $3,600,000, are classified as period expenses. Hand had suggested that warehousing costs be included as product costs because they are "definitely related to our product." The company produced 240,000 units during the period and sold 200,000 units. As the controller reworked the numbers he discovered that if he included warehousing costs as product costs, he could improve operating income by $600,000. He was also sure these new numbers would make Hand happy. Cick the icon to vinw addisondi data.) Resid the ceguirements * Ircetese in cperating insere. = Aequirement 2 is Hand cosmect in Nis justification that thete costs "are definely related is eur proouct? The controller Fiesearch and development, as well as al coshe related wo worehousing and ditrbusn of gocods, steuld be cataked as Recuirement 3. By how much wit Hand proft poricnaly if the cortreler makme ite adjusimerts in tequiement tr? Jasoc Hand will ptotit personaly by if the controler makis the adyutments Requiremeet 4. What should ene plant centroler do? The controler these cessts that are drecty celated is marufactueng and 5 prepedy refect in the

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