Exercise 16.10 (Static) Preparing an Income Statement Using the Cost of Finished Goods Manufactured (LO16-4, LO16-6) Randolph Company reports the following information pertaining to its operating activities. Materials Inventory Work in Process Inventory Finished Goods Inventory Ending Balance Beginning Balance $70,000 $ 60,000 41,000 16,000 79,000 21,000 During the year, the company purchased $135,000 of direct materials and incurred $22,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $19,000. Selling and administrative expenses amounted to $30,000, and the company's annual sales amounted to $280,000. a. Prepare Randolph's schedule of the cost of finished goods manufactured. b. Prepare Randolph's income statement (ignore income taxes).