Ridgeway Company reports the following information pertaining to its operating activities:

During the year, the company purchased $35,000 of direct materials and incurred $22,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $19,000. Selling and administrative expenses amounted to $30,000, and the company€™s annual sales amounted to $80,000.
a. Prepare Ridgeway€™s schedule of the cost of finished goods manufactured.
b. Prepare Ridgeway€™s income statement (ignore incometaxes).

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Materials Inventory .. Work in Process Inventory Finished Goods Inventory Ending Beginning Balance Balance S70,000 $60,000 41,000 29,000 16,000 21,000