,

Service organizations, 37, an organization that produces intangible products. Services, 37, tasks or activities performed for a customer or an activity performed by a customer using an organization's products or facilities. Variable cost, 36, costs that, in total, vary in direct proportion to changes in output within the relevant range. Work in process (WIP), 45, the cost of the partially completed goods that are still being worked on at the end of a time period. I. Product Costs, Cost of Goods Manufactured Statement, and the Income Statement Brody Company makes industrial deaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: n1 Raw materials purchases $250,000 Direct labor 140,000 Depreciation on factory equipment 45.000 Depreciation on factory building 30,000 Depreciation on headquarters building 50,000 Factory insurance 15.000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Beginning balance, Raw materials 124,000 Beginning balance, WIP 124.000 Beginning balance, Finished goods 84,000 Ending balance, Raw materials 102,000 Ending balance, WIP 130,000 Ending balance, Finished goods 82.000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5% of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total primo cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product Cost 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that cach line item represents