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QUESTION 2 Samuel James owner of the layjuice company was very happy to see that the onnovative new kitchen juicer he had started producing in september 2020 was highly profitable. It was appearent to him that the unique design of the juicer and the selling price of 455 were just what customers wanted. Because of the exceleent fianncial results, Samuel is beginning to make plans to increase production Decembers productions has been 2000 juicers and samuel would like to produce twice that amount. Before he signs a contract to build a new manufcaturing factory, he has asked for your advice. He has provided you with the following information, which was prepared by smauels sale manager, Yini Yini has studied sales and marketing but has never studied accounting, Kitchen Juicers Financial Results for December 2020 Sales (455 per juicer) 78500 Less expenses: 7500 Sales and Admin Salaries 15000 Rent and utilites 1500 depreciation, sales equipment 5000 advertising move number down 29000 Operating Income 49500 (a) 75% of the rent and utuilities applies to factory operations (b) 100% of the advertising cost related to the kitchen juicers (C) Raw materials inventory at the beginning of december was 10000 and at the end of decemeber was 4000 (d) work in process inventroy at the beginning of december was 8000 and at the end of december was 5500 (E) there were no finished goods at the beginning of december (F) there was no over or under applied overhead (G) The following additional costs were inccured during December 2020 Purchases of Raw materials 35000 Indirect factory labour 5000 Direct Factory Labour 8500 Depreciatin Factory equipment 56000 Matenance factory 4800 REQUIRED: 1. prepare a COGSM Scheduele for December 2. Determine the COGS and the cost of ending finished goods inventory for december 3. Prepare an incoem statement for December 4. What advice would you give samual about expanding the production of kitchen juicers? Please clearly state whetehr you think samual should expand operations and provide three specific reasons

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