ces Exercise 15-21 (Static) Preparing an income statement and determining inventory balances LO P3 Tyler Corporation reports the following results for its first month of operations ended December 31. Overhead is applied using a predetermined overhead rate of 80% of direct materials cost. Raw materials purchased Direct materials used Direct labor used Cost of goods manufactured $ 18,400 Sales $ 36,000 12,000 Cost of goods sold 18,400 Selling expenses 28,400 32,000 General and administrative expenses 2,100 3,200 1. Prepare an income statement for the month ended December 31. 2. Determine the December 31 ending inventory balances for Raw Materials, Work in Process, and Finished Goods. Hint Because Tyler is in its first month of operations, each account begins with a $0 balance, also, there were no indirect materials used this month