Santana rey, owner of business solutions

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






1. Classify the following manufacturing costs of Business Solutions by behavior and traceability.






Product Costs



Costs by Behavior



Costs by Traceability






Fixed Direct









1. Monthly flat fee to clean workshop



2. Laminate coverings for desktops



3. Taxes on assembly workshop



4. Glue to assemble workstation component parts



5. Wages of desk assembler



6. Electricity for workshops



7. Depreciation on tools



2. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. Assume the following manufacturing costs:






Direct materials






Factory overhead






Direct labor









Beginning goods in process: none (December 31, 2011)



Ending goods in process: $540 (January 31, 2012)



Beginning finished goods inventory: none (December 31, 2011)



Ending finished goods inventory: $350 (January 31, 2012)



3. Preparing the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012.

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