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



(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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