7.Aspenglow Company had the following expenses during November:
1.Rent on factory building used to produce products$ 2,400
2.Rent on administrative office building1,800
3.Compensation for factory workers who assemble products18,000
4.Compensation for administrative office workers6,000
6.Commissions paid to sales force on sales2,800
7.Materials used to produce products8,000
8.Cost to heat factory building used to produce products600
Determine the total (a) product cost and (b) period cost for November.
8.Slade Enterprises had the following transactions during its first month:
1.Owners contributed $30,000 to start the firm.
2.Inventory costing $16,000 was purchased for cash.
3.The first month's rent of $4,000 was paid in cash.
4.One-half of the inventory was sold to customers on credit for $12,400.
5.Advertising was run costing $3,600. It will be billed and paid for during the second month.
6.Additional inventory costing $14,000 was purchased and sold to customers for $22,000 cash.
7.At month end the employees were paid $5,000 in cash and an additional $1,600 of wages was owed to them, but had not been paid.
8.On the last day of the month, equipment costing $11,000 was purchased for cash.
Prepare a schedule that shows how net income from operations for the first month is determined.