Part A: Fonseca Company produced 120,000 chess sets during the past calendar year. These sets sell for $75 each. Fonseca had 11,350 chess sets in finished goods inventory at t beginning of the year. At the end of the year, there were 7,600 chess sets in finished goods inventory. Fonseca's accounting records provide the following information: Purchases of direct materials Direct materials inventory, January 1 Direct materials inventory, December 31 $1,850,000 310,000 112,000 2,400,000 790,000 1,200,000 Direct labor Indirect labor Rent, factory building Depreciation, factory equipment 630,000 Utilities, factory 150,000 Insurance on the factory 200,000 Salary, sales supervisor 60,000 Commissions, salespersons 180,000 General administration 93,200 Work in process inventory, January 1 500,000 Work in process inventory, December 31 718,000 Finished goods inventory, January 1 326,000 Finished goods inventory, December 31 403,000 Required: 1. Prepare a cost of goods manufactured statement. 2. Compute the cost of producing one chess set last year. 3. Prepare an income statement on an absorption-costing basis. Part B: What distinguishes inventoriable and period costs among manufacturing companies, merchandising companies and service companies. Explain.