On December 31, 2016, the accounting records of a medium-sized company in Winnipeg were severely damaged by an accidental fire. The company did have access to certain incomplete accounting records, which revealed the following:

a. Beginning inventories, January 1, 2016:

Direct materials...................................................= $24,000
Work-in-process..................................................= $48,000
Finished goods....................................................= $40,000

b. Key ratios for 2016:

Net income..........................................................= 10% of sales revenue
Manufacturing overhead...................................= two-thirds of conversion costs

c. Operational data for 2016:

Sales.....................................................................= $76,500,000
Cost of goods manufactured............................= $53,540,000
Direct labour.......................................................= $12,375,000

d. Ending inventories, December 31, 2016:

Direct materials..................................................= $20,000
Work-in-process.................................................= $40,000
Finished goods...................................................= $30,000

Required:

From the above data, prepare in good form (1) the statement of cost of goods manufactured and (2) the income statement. Your statements must clearly show (1) the cost of direct materials purchased and used, (2) direct labour, (3) manufacturing overhead, (4) total manufacturing costs, (5) cost of goods sold, and (6) the SG&A expenses.