The following financial information is for Caravelli Company. 

Of the total raw materials placed in production for the year, $36,000 was for indirect materials. The company had $3,795,000 in sales for the year ended December 31, 2016. The company also had the following costs for the year.

Required:

a. Prepare a schedule of raw materials placed in production for the year ended December 31, 2016.

b. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2016.

c. Prepare a schedule of cost of goods sold for the year ended December 31, 2016.

d. Prepare an income statement for the year ended December 31, 2016.

e. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.)

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December 31, 2016 December 31, 2015 $ 30,000 1,650,000 Raw materials inventory Work-in-process inventory Finished goods inventory $ 24,000 1,800,000 1,050,000 1,230,000 $ 270,000 $ 720,000 $ 300,000 Direct labor used in production $ 375,000 $1,890,000 Selling General and administrative Raw materials purchases Manufacturing overhead