Classic manufacturing costing system uses a$$ three$-$part classification of direct$$ materials, direct manufacturing$$ labor, and manufacturing overhead costs. The following items$($in millions$)$ pertain to

Classic Corporation.

Requirement

Prepare an income statement and a supporting schedule of cost of goods manufactured.

Begin by preparing the supporting schedule of cost of goods manufactured$($in millions$).$ Start with the direct materials and direct labor$$ costs, then indirect manufacturing$$ costs, and complete the schedule by calculating cost of goods manufactured.$$

$$

For Specific Date

Work$-$in$-$process inventory, January $1,2020$

$$12$

Direct materials inventory, December $31,2020$

$8$

Finished$-$goods inventory, December $31,2020$

$11$

Accounts payable, December $31,2020$

$20$

Accounts receivable, January $1,2020$

$59$

Work$-$in$-$process inventory, December $31,2020$

$1$

Finished$-$goods inventory, January $1,2020$

$46$

Accounts receivable, December $31,2020$

$30$

Accounts payable, January $1,2020$

$50$

Direct materials inventory, January $1,2020$

$35$

For Year $2020$

Plant utilities

$$10$

Indirect manufacturing labor

$22$

Depreciation$$plant and equipment

$7$

Revenues

$358$

Miscellaneous manufacturing overhead

$17$

Marketing, distribution, and customer$-$service costs

$98$

Direct materials purchased

$82$

Direct manufacturing labor

$41$

Plant supplies used

$6$

Property taxes on plant

$5$