Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required:
a. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
b. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020.

Assume the following manufacturing costs:

Beginning work in process: none (December 31, 2017)
Ending work in process: $540 (January 31, 2018)
Beginning finished goods inventory: none (December 31, 2017)
Ending finished goods inventory: $350 (January 31, 2018)
Direct materials: $2,200

Required:
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2018.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.