Felixs Fine Jewelry produces fine jewelry for department stores. The following costs incurred by the company may be classified as direct materials direct labor manufacturing overhead or period costs.
a.
Wages paid to Jewelry workers
$ 1200000
b.
Utilities in the administrative area
300000
c.
Depreciation on chain linking machinery utilized in the plant
200000
d.
Silver gold and gemstones used in producing necklaces
4000000
e.
Company attorney’s salary
150000
f.
Lease rental charge on forklift for material and finished goods handling
10000
g.
Telephone expense for customer service office
20000
h.
Wages of plant heating and cooling technicians
100000
i.
Utilities for the assembly area of the plant
250000
j.
Maintenance on computers utilized in the administrative assistants office
1500
k.
Salary paid to the CEO
200000
l.
Fine paid for introducing cyanide into the local water supply
1000000
m.
Signature red jewelry boxes used for packaging
50000
n.
Expedited freight of product to major customer
50000
Instructions:
Classify the costs and total by classification. Assume Felixs Fine Jewelrys revenue for the period was $8000000 and there is no change in ending inventory. Prepare an operating income statement that shows the deductions of expense in terms of total classification by category: direct materials direct labor manufacturing overhead or period costs.
Provide your answers in clearly organized Excel spreadsheet. Refer to your text to aid you in this assignment.
Check spelling and formatting for readability. All responses must comply with theAPA Requirements.Be sure to review the Module 1 Critical Thinking grading rubric which may be accessed through the Course Information page.