The following data refer to Laredo Luggage Company for the year 20x2:
Sales revenue....................................................$475,000
Work-in-process inventory, December 31.................... 15,000
Work-in-process inventory, January 1.......................... 20,000
Selling and administrative expenses............................. 75,000
Income tax expense...................................................... 45,000
Purchases of raw material............................................. 90,000
Raw-material inventory, December 31........................ 12,500
Raw-material inventory, January 1.............................. 20,000
Direct labor.................................................................. 100,000
Utilities: plant.............................................................. 20,000
Depreciation: plant and equipment.............................. 30,000
Finished-goods inventory, December 31..................... 25,000
Finished-goods inventory, January 1........................... 10,000
Indirect material used.................................................. 5,000
Indirect labor............................................................... 7,500
Other manufacturing overhead.................................... 40,000

Required:
1. Prepare Laredo Luggage’s schedule of cost of goods manufactured for the year.
2. Prepare Laredo Luggage’s schedule of cost of goods sold for the year.
3. Prepare Laredo Luggage’s income statement for the year.
4. Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if raw-material purchases amounted to $92,000 and indirect labor was $9,000.