Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.

Required:

1.	Classify the following manufacturing costs of Business Solutions by behavior and traceability.

Product Costs	Cost by Behavior	Cost by Traceability
1. Monthly flat fee to clean workshop	(Click to select)VariableFixed	(Click to select)IndirectDirect
2. Laminate coverings for desktops	(Click to select)FixedVariable	(Click to select)DirectIndirect
3. Taxes on assembly workshop	(Click to select)FixedVariable	(Click to select)DirectIndirect
4. Glue to assemble workstation component parts	(Click to select)FixedVariable	(Click to select)IndirectDirect
5. Wages of desk assembler	(Click to select)VariableFixed	(Click to select)IndirectDirect
6. Electricity for workshop	(Click to select)VariableFixed	(Click to select)IndirectDirect
7. Depreciation on tools	(Click to select)VariableFixed	(Click to select)IndirectDirect

Direct materials: $2,600

Factory overhead: $550

Direct labor: $900

Beginning goods in process: none (December 31, 2011)

Ending goods in process: $550 (January 31, 2012)

Beginning finished goods inventory: none (December 31, 2011)

Ending finished goods inventory: $370 (January 31, 2012)

2.	Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Business Solutions
Manufacturing Statement
For Month Ended January 31, 2012
(Click to select)Less: Goods in process, January 31, 2012Direct laborAdd: Goods in process, December 31, 2011Direct materialsFactory overhead costs	$
(Click to select)Add: Goods in process, December 31, 2011Direct laborLess: Goods in process, January 31, 2012Factory overhead costsDirect materials
(Click to select)Direct laborDirect materialsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Factory overhead costs
Total manufacturing costs
(Click to select)Less: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011Cost of goods manufacturedFactory overhead costsDirect labor
Total cost of goods in process
(Click to select)Factory overhead costsLess: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011Direct laborCost of goods manufactured
(Click to select)Add: Goods in process, December 31, 2011Direct laborFactory overhead costsLess: Goods in process, January 31, 2012Cost of goods manufactured	$

3.	Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Business Solutions
Partial Income Statement
For Month Ended January 31, 2012
(Click to select)Goods available for saleFactory overhead costsFinished goods inventory, December 31, 2011Cost of goods manufacturedLess: Finished goods inventory, January 31, 2012	$
(Click to select)Factory overhead costsFinished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedGoods available for sale
(Click to select)Finished goods inventory, December 31, 2011Goods available for saleDirect laborFactory overhead costsCost of goods manufactured
(Click to select)Factory overhead costsLess: Finished goods inventory, January 31, 2012Finished goods inventory, December 31, 2011Cost of goods manufacturedDirect labor
Cost of goods sold	$