(Solved by Humans)-Problem 2-49 Income Statement, Cost of Services Provided, Service Attributes Berry Company is an...

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Problem 2-49  Income Statement, Cost of Services Provided, Service Attributes Berry Company is an architectural firm located in Detroit, Michigan. The company works with small and medium-size construction businesses to prepare building plans according to the cli- ent’s contract. The following data are provided for the previous year:   Number of designs completed and sold 700 Direct labor $800,000 Beginning inventory of direct materials $  20,000 Manufacturing overhead 100,000 Beginning inventory of designs in process 60,000 Administrative expense 150,000 Ending inventory of direct materials 10,000 Selling expense 60,000 Ending inventory of designs in process 100,000 Beginning inventory of finished designs 300,000 Purchases, direct materials   Required: 40,000 Ending inventory of finished designs 280,000 1.       Calculate the cost of goods manufactured. 2.       Calculate the cost of goods sold. 3.       Assume that the average fee for a design is $2,100. Prepare an income statement for Berry. 4.       CONCEPTUAL CONNECTION Refer to the cost of goods sold (calculated in Requirement 2). What is the dominant cost? Briefly explain why this cost is the dominant one for Berry.