$\frac{4\mathrm{.}87}{10}$ Work $in$ Process Inventory, October $1$

Depreciation Expense$-$Sales Equipment

Selling and Administrative Salaries

Less $vv$: Selling and Administrative Salaries

Depreciation $on$ Factory Equipment

Manufacturing Overhead

Cost $of$ Goods Manufactured

eTextbook and Media Tamarisk Company $is$ a manufacturer $of$ smartphones. Its controller resigned $in$ October $2027.An$ inexperienced assistant accountant

has prepared the following income statement for the month $of$ October $2027.$

Tamarisk Company

Income Statement

For the Month Ended October $31,2027$

Prior $to$ October $2027,$ the company had been profitable every month. The company's president $is$ concerned about the accuracy $of$

the income statement. $As$ her friend, you have been asked $to$ review the income statement and make necessary corrections. After

examining other manufacturing cost data, you have acquired additional information $as$ follows.

Inventory balances $at$ the beginning and end $of$ October were:

Only $75\%of$ the utilities expense and $60\%of$ the insurance expense apply $to$ factory operations. The remaining amounts should $be$

charged $to$ selling and administrative activities.