Problem 2-9 You have the following information about the activities of ABC Inc. for 2016

Sales 500,000

Factory maintenance 24,000

Indirect labour 19,000

Direct Material purchases 98,000

Factory utilities 17,000

Ending Direct materials 16,000

General and Administrative expense 71,200

Beginning work-in-process inventory 26,000

Beginning finished goods inventory 63,000

Ending work-in-process inventory 34,000

Ending finished goods inventory 44,600

Beginning direct material inventory 13,000

Selling Expenses 67,600

Direct labour 83,000

Factory insurance 9,000

Indirect Materials 7,600

Amortization-Factory 30,000

Required: 1. What was the ending direct material inventory?

2. What was the total manufacturing cost?

3. What was the cost of goods manufactured?

4. What was the cost of goods sold?

5. Based on all the answers above, please calculate the net income for 2016.

Cost Identification Mr. John Black began his pottery manufacturing business several years ago. The following costs occurred during 2016, please use the cost classification method to put them in to proper cost group

1) As the business owner, John's salary $5000 per month

2) Workshop Building rent, $2800 per month

3) Clay and glaze $2 per pottery

4)Wages of production worker, $12/pottery

5) Advertising, $800 per month

6) Sales commission, $10 / pottery

7) Rent of production equipment, $300 /month

8) Amortization of office copier machine $500

9) Rent of sales office $500 per month

10) Phone for taking orders $40 per month

11) Interest lost on savings account, $1200 per year