Suppose you are working as trainee after BBA and your management given the following data pertain to Maize Products Company:

Sales Revenue

1,000,000

Direct materials inventory, Jan 1, 2019

20,000

Direct labor-Wages

350,000

Depreciation expense-Plant and equipment

80,000

Indirect labor-Wages

5,000

Heat, Light, andpower - Plant

12,000

Supervisor's salary-Plant

40,000

Finished goods inventory, Jan 1, 2019

35,000

Work in Process inventory, Dec, 31, 2019

25,000

Supplies-Administrative office

6,000

Property taxes-Plant

13,000

Finished goods inventory, Dec 31, 2019

40,000

Direct materials inventory, Dec 31, 2019

30,000

Sales representative's salaries

190,000

Work in Process inventory, Jan, 1, 2019

35,000

Direct materials purchases

100,000

Supplies-Plant

4,000

Depreciation-Administrative office

30,000

Required

a)As a trainee Prepare Direct Material used, FOH, Prime Cost and Conversion cost.

b)Explain Why Management prepares above mentioned costs terms and how each cost terms always favor or disappoint to management decision to decrease or decrease product cost? If product cost increases or decreases in any period what impact on firm profit?

c)Prepare a statement of cost of goods manufactured and an income statement for Maize Products Company for the year ended December 31, 2019.