Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:
Indirect material ............. $ 10,000
Indirect labor .............. 25,000
Depreciation on plant and equipment ..... 100,000
Utilities ................ 25,000
Other ................. 30,000
Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $1 10,000. The firm€™s tax rate is 40 percent.

Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an incomestatement.

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Inventory Classification Raw material Work in procss.. Finished goods January 1, 20x1 60,000 120,000 150,000 December 31, 20x1 70,000 115,000 165,000