IBM's cloud computing division has reported the following for the year ending December 2023:

• Beginning Work in Process Inventory: $500,000
• Direct Materials: $1,500,000
• Direct Labor: $1,200,000
• Manufacturing Overhead: $800,000
• Ending Work in Process Inventory: $600,000
• Sales Revenue: $8,000,000
• Administrative and Selling Expenses: $1,200,000

Requirements:

1. Compute the Total Manufacturing Costs.
2. Calculate the Cost of Goods Manufactured.
3. Determine the Cost of Goods Sold.
4. Calculate the Gross Profit.
5. Prepare the detailed Income Statement for the year ending December 2023.