Popeye Company is a metal and wood cutting manufacture, selling products to the home construction market. Consider the following data for the month of October, 2006.
| 1-1-2006 | 31-10-2006 | |
| Direct materials | 100,000 | 125,000 |
| Finished goods | 250,000 | 375,000 |
| Work-in-process | 25,000 | 35,000 |
| Transactions during the month: | Rs |
| Sand paper | 5,000 |
| Material-handling costs | 175,000 |
| Lubricants and Coolants | 12,500 |
| Miscellaneous indirect manufacturing labour | 100,000 |
| Direct manufacturing labour | 750,000 |
| Plant-leasing costs | 135,000 |
| Depreciation-plant and equipment | 90,000 |
| Property taxes on plant and equipment | 10,000 |
| Fire insurance on plant and equipment | 7,500 |
| Direct materials purchased | 1,150,000 |
| Sales revenues | 3,400,000 |
| Marketing promotions | 150,000 |
| Marketing salaries | 250,000 |
| Distribution costs | 175,000 |
| Customer-service costs | 250,000 |
Required
(i) Prepare an income statement with a separate supporting schedule of cost of goods manufactured.
(ii) For all manufacturing items, indicate by V or F whether each is basically a variable cost or a fixed cost (where the cost object is a product unit).
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