Matilda Surf Gear, a manufacturer of sports and beach wear, had the following inventory balances at the beginning and end of the year.

During the year, the company purchased $240,000 of raw material and spent $420,000 for direct labour, Manufacturing costs were as follows.
Indirect material........................................$12,000
Indirect labour............................................22,000
Depreciation on plant and equipment...............110,000
Utilities....................................................23,000
Other......................................................35,000
Sales revenue was $210,000 for the year, Selling and administrative costs for the year amounted to $105,000. The firm's tax rate is 35 per cent.
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.
4. Construct an Excel® spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labour is $410,000 and utilities cost $24,000.

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Inventory classification Raw material 31 December 1 January $55 000 $75 000 Work in process 110 000 125 000 Finished goods 155 000 160 000