August 2013 inventory and cost data for Petersham Company are as follows:

a. Compute the inventory value for direct materials at August 31, 2013.
b. Compute total product costs for August 2013.
c. Prepare a schedule of cost of goods manufactured for August 2013.
d. Compute cost of goods sold for August 2013.
e. Prepare an income statement for August 2013. Assume that Petersham’s income tax rate is 40 percent. Sales for August 2013 were $985,000.

Direct labor Direct material purchased Direct material used Selling and administrative expenses Factory overhead $182,400 196,300 195,800 171,200 205,700 8/31/13 Direct material Work in process Finished goods $12,300 25,900 62,700 33,300 55,500