1. The following are costs of Big Rig Trucks, a manufacturer of large diesel vehicles.

1.) Aluminum used in manufacturing each truck’s body.

2.) Factory supervisor’s salary.

3.) Company president’s salary.

4.) Cleaning supplies used for daily cleanup.

5.) Wages of workers who build the engines.

6.) Patent lawyer’s costs.

7.) Accounting fees.

8.) Depreciation on sales person’s car.

Required:

For each cost, identify it as:

a.) Variable or Fixed

b.) Direct Material, Direct Labour, Manufacturing Overhead, Selling, Administrative or Research

and Development.
2. Schedule of Cost of Goods Manufactured

Kelowna Plumbing Supplies shows the following data related to its December 31,
2017 fiscal year:

Raw materials inventory, January 1, 2017 £5,000

Raw materials inventory, December 31, 2017 8,000
Work in process inventory, January 1, 2017 23,000
Work in process inventory, December 31, 2017 21,000
Finished goods inventory, January 1, 2017 16,000
Finished goods inventory, December 31, 2017 10,000
Advertising 56,000
Factory supervisor's salary 42,000
Company president's salary 85,000
Property taxes - factory 25,000
Depreciation - factory 35,000
Factory maintenance 7,000
Sales commissions 32,000
Depreciation - office 2,000
Utilities expense - factory 23,000
Utilities expense - office 11000
Purchases of raw materials 148,000
Direct labour 160,000

Required:
Based on the information above, prepare a schedule of cost of goods manufactured.
Basic equations to keep in mind:

1) Beginning Inventory + Inventory Purchased = Inventory Available

2) Inventory Available – Ending Inventory = Inventory Used