San Ysidro Company manufactures hiking equipment. The company€™s administrative and manufacturing operations share the company€™s one building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. The cost accountant at San Ysidro has compiled the following information for the year ended December 31:

Required
Prepare a cost of goods manufactured and sold statement and an incomestatement.

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1 Administrative salaries 2 Attorney fees to settle zoning dispute 3 Building depreciation (manufacturing portion only) 4 Cost of goods manufactured 5 Direct materials inventory, December 31 6 Direct materials purchased during the year 7 Direct materials used 8 Distribution costs 9 Finished goods inventory, January 1 10 Finished goods inventory, December 31 11 Insurance (on plant machinery) 12 Maintenance (on plant machinery) 13 Marketing costs 14 Other plant costs 15 Plant utilities 16 Sales revenue 17 Taxes on manufacturing property 18 Total (direct and indirect) labor 19 Work-in-process inventory, January 1 20 Work-in-process inventory, December 31 21 S 192,000 22,960 181,440 2,776,760 248,000 1,008,000 1,069,880 4,480 224,000 252,000 53,200 33,880 103,600 82,160 104,160 4,550,000 38,800 1,209,600 72,520 68,880