Howell Ltd has the following account balances (in millions):

Required
Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended 31 December 2008. (For additional questions regarding these facts, see the next problem.)

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For specific date For year 2008 Purchases of direct materials Direct manufacturing labour Direct materials, 1 January 2008 £15 Work in progress, 1 January 2008 10 Finished goods, 1 January 2008 Direct materials, 31 December 2008 Work in progress, 31 December 2008 5 Finished goods, 31 December 2008 325 100 70 Depreciation plant building 20 and equipment 80 Plant su pervisory salaries 55 Miscellaneous plant overhead Revenues Marketing, distribution and 35 950 customer-service costs Plant supplies used Plant utilities Indirect manufacturing labour 240 10 30 60