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: (Please note that the fourth line is to be left blank.)

1. Direct materials: $2,000
2. Factory overhead: $550
3. Direct labor: $900
4. Beginning work in process: none (December 31, 2019)
5. Ending work in process: $540 (January 31, 2020)
6. Beginning finished goods inventory: none (December 31, 2019)
7. Ending finished goods inventory: $360 (January 31, 2020)

c. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020. (Please note that the third line is to be left blank.)