Q$1.$

a$)$ Prepare a list of all of the accounts and amounts of period costs included in the schedule below. Show each individual account name and amount, and also provide the total of these costs.

b$)$ Prepare a Statement of Cost of Goods Manufactured for the year ended December $31,2023.$ Make sure all information and calculations are clear. Use a good format $($for example the textbook exhibit $17-6$ modified as needed$)$ and include a proper heading $($company name, statement title, and statement time period$)$ and appropriate underlining of totals and subtotals. List each overhead cost separately in this statement. Show all calculations needed within the statement.

c$)$ Calculate the Cost of Goods Sold for the year ended December $31,2023.$ Make sure all information and calculations are clear.

Salaries costs of sales staff people

$$87,000$

Cost of corporate office rent

$$55,000$

Depreciation expense$$factory equipment

$$52,400$

Direct labor, manufacturing

$268,000$

Salaries of corporate officers

$$135,000$

Advertising expense

$$22,350$

General corporate insurance

$$11,470$

Factory supplies used

$$12,000$

Indirect manufacturing labor

$$35,000$

Factory insurance

$$15,500$

Factory utilities

$$14,000$

Factory maintenance

$$7,500$

Inventories:

Raw materials inventory, January $1,2023$

$$32,000$

Raw materials inventory, December $31,2023$

$$28,000$

Work in Process inventory, January $1,2023$

$$33,780$

Work in Process inventory, December $31,2023$

$$37,460$

Finished goods inventory, January $1,2023$

$$56,970$

Finished goods inventory, December $31,2023$

$$62,000$

Raw materials purchases

$$325,000$

Rent expense$$factory

$$50,000$

d$)$ If the company misclassified a period cost as a product cost, what would be the likely affect on operating income? Explain in a complete sentence $($or two$).$