Question 1: Below are listed various costs that are found in organizations. 1. Burger buns in a Mc Donald's outlet. 2. Advertising by a Altamash Dental Clinic. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Pepsi Co. factory. 6. Insurance on IBM's corporate headquarters. 7. Salary of a supervisor overseeing production of books at McGraw-Hill. 8. Commissions paid to Encyclopedia Britannica salespersons. 9. The wages of the General Tires' accountant. 10. Depreciation of factory facilities at a General Electric plant. 11. Steel and tires used in BMW. 12. Yarn used in sweater production in Bonanza Required: Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a selling and administrative cost or a product cost. Prepare your answer sheet as shown below. Write "YES" in the appropriate columns to show the proper classification of each cost. The first one has been done for you. Cost Item Cost Behavior Selling and Administrative cost Variable Fixed 1 Yes Product Cost Yes Question 2: At the end of its fiscal year December 31, Year 2, the following information appears in the financial statements of All Good Manufacturers: Cost of goods manufactured $405, FOH (80% of Direct Labor 000 000 Cost of R. Material Used (all Direct) 160, 000 000 $92, Work in process Inventory (ending) 48, Required: Using good form, determine the work in process inventory on January 1. ' Question 3: Direct Material - April 1 000 Rs. 60, Direct Material - March 31 500 Rs. 23, Indirect Material 25, 000 Rent (4/5 factory, 1/5 office) 000 45, Labor costing Rs. 250,000 of which 80% is Direct Labor 000 factory, office and selling in the ratio of 6: 1:1 Depreciation on building 30, Purchases of DM 70, 000 Insurance (4/5 factory, 1/5 office) 000 100, Freight in 5, General Expenses 12, 000 000 Purchases Discount -2% of Purchases Administrative Expense 15, 000 Required: Calculate the Prime, Conversion, Product and Period Cost Question 4: The following information has been taken from the accounting records of Klear-Bottles Corporation for the previous year: Selling expenses. Administrative expenses.. $140,000 270,000 Raw materials inv., Jan 1.. 90,000 Manufacturing overhead. 640,000 Raw materials inv., Dec. 31 60,000 Direct labor cost.. 150,000 Work in process inv., Jan 1 180,000 Work in process inv., Dec. 31... 100,000 Purchases of raw materials. 750,000 Finished goods inv., Jan. 1.... 260,000 Sales.... 2,500,000 ** Finished goods inv., Dec. 31 210,000 Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an income statement.