Vintage Furniture constructs and sells executive style conference tables. The selling price is $10,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Vintage is able to use each tree purchased without incurring any significant spoilage.

Consider the following "disorganized" information and complete the indicated requirements.

Ending work in process (600 tables).........................................$1,800,000

Selling price per table...............................................................10,000

Ending finished goods (200 tables)...........................................1,400,000

Indirect labor incurred during the period........................................125,000

Raw materials transferred into production (700 trees)........................700,000

Beginning finished goods (400 tables).......................................2,800,000

Cost of glues and screws............................................................35,000

Beginning work in process.....................................................1,465,000

Ending raw materials (500 trees)................................................500,000

Direct labor incurred during the period......................................3,300,000

Selling, general, and administrative costs incurred........................1,150,000

Depreciation of factory equipment...............................................75,000

Raw material purchases during the period (900 trees).......................900,000

All other factory overhead.......................................................300,000

Tables sold (800 tables)

(a) Complete the reconciliation of units on the accompanying bank worksheet, showing the "unit" activity in raw materials, work in process, and finished goods.

(b) Calculate the cost of goods manufactured.

(c) Calculate the cost of goods sold.

(d) Calculate net income. Assume an income tax rate of 35%.