Question

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

to as (a) e or fixed and (b) direct or indirect of cost of goods $2,700 Direct labor: $1,100 Next

Answer 1

1.)

Sr. No.	COST BY BEHAVIOR	COST BY TRACEABILITY
1	Fixed	Indirect
2	Variable	Direct
3	Fixed	Indirect
4	Variable	Direct
5	Fixed	Direct
6	Fixed	Indirect
7	Fixed	Direct

2.)

Schedule of Cost of goods manufactured

Direct Materials (a)	2,700
Direct Labour (b)	1,100
Factory Overhead (c)	530
Total manufacturing costs [a+b+c] (d)	4,330
Ending work in process (e)	600
Cost of goods manufactured [d-e]	3,730

3.)

Cost of Goods Sold

Cost of Goods manufactured (a)	3,730
Ending finished goods inventory (b)	360
Cost of goods sold [a-b]	3,370