Work and answer the following problems, showing all work where applicable:

1. Use the correct number to designate each item below.

1. direct materials

2. selling and general expenses

3. manufacturing overhead

4. direct labor

A) _________ Rent expense on factory building

B) _________ Sales supplies used

C) _________ Factory supplies used

D) _________ Indirect materials used

E) _________ Wages of assembly line personnel

F) _________ Cost of primary material used to make product

G) _________ Depreciation on office equipment

H) _________ Rent on office facilities

I) _________ Insurance expired on factory equipment

J) _________ Utilities incurred in the office

K) _________ Advertising expense

L) _________ Taxes paid on factory building

2. Devin’s Dufflebags sells camping equipment. Sales Revenue for January 2009 totaled $55,400. Other information included:

Purchases $18,360

Selling Expenses 15,360

Beginning Merchandise Inventory 7,200

Ending Merchandise Inventory 5,780

Freight-in 140

Depreciation on building 340

1.Prepare the income statement for that month.

2.What is the Cost of Goods Available for Sale?

3.What are the total period costs?