Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of $1,312,000 and had selling and administrative expenses of $204,600.
Beginning inventory:
Direct materials ...... $68,000
Work in process ...... 29,400
Finished goods ...... 43,200
Ending inventory:
Direct materials...... $70,400
Work in process ...... 40,000
Finished goods ...... 42,100
Required:
1. What is the cost of goods sold for last year?
2.  Prepare an income statement for Ellerson for last year.

Exercise 2.21

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Ellerson Company provided the following information for the last calendar year: Beginning inventory: Direct materials $68,000 29,400 Work in process Finished goods Ending inventory: Direct materials 43,200 $70,400 Work in process Finished goods 40,000 42,100