(i) Indicate whether each of the following is a direct cost (D), an indirect cost (ID), or neither (N) and a variable (V) or a fixed (F) cost. Also indicate whether each adds value (VA) or does not add value (NVA) to the product and whether each is a product cost (PD) or a period cost (PER).
1. Production supervisor’s salary
2. Sales commission
3. Wages of a production-line worker
(ii) Using the following information from Hakim Company, prepare an income statement through operating income for the year:
Finished goods inventory, beginning
Cost of goods manufactured
Finished goods inventory, ending