August 2010 inventory and cost data for Petersham Company are as follows:

Direct labor .................$182,400

Direct material purchased ............. 196,300

Direct material used .................... 195,800

Selling and administrative expenses ........ 171,200

Factory overhead ............... 205,700

a. Compute the inventory value for direct materials at August 31, 2010.
b. Compute total product costs for August 2010.
c. Prepare a schedule of cost of goods manufactured for August 2010.
d. Compute cost of goods sold for August 2010.
e. Prepare an income statement for August 2010. Assume that Petersham's income tax rate is 40 percent. Sales for August 2010 were$985,000.

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8/31/10 Direct material 12300 WIP 25,900 33,300 Finished goods 62,700 55,500