The Wadena Company reports the following information pertaining to the month of January:

During January, the company purchased $40,000 of direct materials and incurred $90,000 of direct labor costs. Total manufacturing overhead costs for the month amounted to $55,000. Selling and administrative expenses amounted to $320,000, and the company’s January sales amounted to $680,000.

a. Prepare Wadena’s schedule of the cost of finished goods manufactured.

b. Prepare Wadena’s income statement (ignore income taxes).

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Materials Inventory.... Work in Process Inventory Finished Goods Inventory.. Ending Beginning Balance Balance $35,000 45,000 65,000 $70,000 80,000 50,000