The following cost and inventory data for the just completed year are taken from the accounting records of Eccles Company: Cost Incurred: Advertising expense Direct labor cost Purchases of raw materials Rent, factory building Indirect labor Sales commissions $ 100,000 90,000 132,000 80,000 56,300 35,000 Sales commissions Utilities, factory Maintenance, factory equipment Supplies, factory Depreciation, office equipment Depreciation, factory equipment 35,000 9,000 24,000 700 8,000 40,000 Inventories Raw materials Work in process Finished Goods Beginning of Year $ 8,000 5,000 70,000 End of Year $ 10,000 20,000 25,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Eccles Company's Income Statement for the year. Problem 3 Various cost associated with manufacturing operations are given below. Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost would typically be treated as direct cost or indirect cost with respect to units of the product 1. Plastic washers used in auto production 2. Production superintendent's salary 3. Wages of laborers assembling a product 4. Electricity for operation of machines 5. Janitorial salaries 6. Clay used in brick production 7. Rent on a factory building 8. Wood used in ski production 9. Screws used in furniture production 10. A supervisor's salary 11. Cloth used in suit production 12. Depreciation of cafeteria equipment 13. Glue used in textbook production 14. Lubricants for machines 15. Paper used in textbook production