Chan’s manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Chan Corporation:

 

Required

Prepare an income statement and a supporting schedule of cost of goods manufactured. (For additional questions regarding these facts, see the next problem.)

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For Specific Date Work-in-process inventory, January 1, 2020 Direct materials inventory, December 31, 2020 Finished-goods inventory, December 31, 2020 Accounts payable, December 31, 2020 Accounts receivable, January 1, 2020 Work-in-process inventory, December 31, 2020 Finished-goods inventory, January 1, 2020 Accounts receivable, December 31, 2020 Accounts payable, January 1, 2020 Direct materials inventory, January 1, 2020 For Year 2020 40 37 42 31 $15 10 20 28 51 Miscellaneous manufacturing overhead 8 Marketing, distribution, and customer- service costs Plant utilities Indirect manufacturing labor Depreciation plant and equipment Revenues Direct materials purchased Direct manufacturing labor Plant supplies used Property taxes on plant $9 24 5 352 12 92 83 48 3 7