Assume that the Company in problem sells 140,000 units at $18 per unit. The costs for the period ending are as follows:

Direct materials used ........................................................300,000

Direct labor .......................................................................450,000

Sales salaries .....................................................................275,000

Factory insurance.................................................................24,000

Factory indirect labor.........................................................105,000

Administrative salaries........................................................350,000

Sales commissions...............................................................275,000

Depreciation on factory equipment.......................................14,000

Salaries of administrative staff............................................275,000

Factory utilities ......................................................................35,000

Factory rent............................................................................48,000

Salaries of factory supervisors ............................................216,000

Factory maintenance...........................................................86,000

Travel expense - sales...........................................................21,000

During the period, the company purchased raw materials amounting to $435,000 addition to these costs, the beginning and ending inventories are as follows:

Beginning raw materials ............................................................................50,000

Ending raw materials...............................................................................185,000

Beginning WIP .........................................................................................220,000

Ending WIP .............................................................................................277,000

Beginning FG..........................................................................................190,000

Ending FG................................................................................................277,000

Required:

1. Prepare a cost of goods manufactured for the period ended

2. Prepare a cost of goods sold for the period ending

3. Prepare the income statement through the operating income for the same period.