Exercise 2 The following data was taken from the general ledger and other records of Hernandez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year: Sales Materials inventory (July 1) $50,000 15,000 Work in process inventory (July 1) 20,000 Finished goods inventory (July 1) 28,000 Materials purchased 21,000 Direct labor cost 12,500 Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost) 11,500 Selling and administrative expense 8,000 Inventories at July 31: Materials Work in process Finished goods 16,000 18,000 30,000 a. Prepare a statement of cost of goods manufactured. b. Determine the cost of goods sold for the month.