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.