Problem 1-19B Product versus general selling and administrative costs Qazi M

Problem 1-19B Product versus general selling and administrative costs

Qazi Manufacturing Company was started on January 1 2007 when it acquired $134000 cash by issuing common stock. Qazi immediately purchased office
furniture and manufacturing equipment costing $20000 and $38000 respectively. The office furniture had a four-year useful life and a zero salvage value.
The manufacturing equipment had a $2000 salvage value and an expected useful life of six years. The company paid $14000 for salaries of administrative
personnel and $18000 for wages of production personnel. Finally the company paid $24000 for raw materials that were used to make inventory. All
inventory was started and completed during the year. Qazi completed production on 8000 units of product and sold 6000 units at a price of $14 each in
2007. (Assume that all transactions are cash transactions.)

Required