The Genesis Corporation has the following account balances (in millions) For Year 20x1 Purchases of direct materials Direct manufacturing labor For Specific Date Direct materials, January 1, 20X1 Work in process, January 1,20X1 Finished goods, January 1, 20X1 P325 100 P15 10 70 Depreciation plant building 80 Direct materials, December 31, 20X1 20 Work in process, December 31, 20X15 Finished goods, December 31, 20X1 55 and equipment Plant supervisory salaries Miscellaneous plant overhead Revenues Marketing, distribution and 35 950 customer-service costs Plant supplies used Plant utilities Indirect manufacturing labor 240 10 30 60 Required 1. Prepare an income statement and a supporting schedule of costs of goods manufactured for the year ended December 31, 20X1 How would the answer to the preceding problem be modified if you were asked for a schedule of cost of goods manufactured and sold instead of a schedule of cost of goods manufactured? Be specific. Would the sales manager's salary (included in marketing, distribution and customer-service costs) be accounted for differently if the Genesis Corporation were a merchandising company instead of a manufacturing company? Describe how wages of an assembler in the plant would be accounted for in this manufacturing company. Plant supervisory salaries are usually regarded as indirect manufacturing costs. Under what conditions might some of these costs be regarded as direct manufacturing costs? Give an example. 2. 3. 4. 5. Suppose that both the direct materials used and the plant depreciation were related to the manufacture of 1 million units of product. What is the unit cost for the direct materials assigned to those units? What is the unit cost for plant building and equipment depreciation? Assume that yearly plant depreciation is computed on a straight-line basis