MAKE SURE TO SOLVE THE WHOLE THING

Using the following information, prepare an income statement for Legend Guitars for 2016 First - Determine COGM (cost of goods manufactured) 1. Determine cost of materials used 2. Determine total manufacturing costs incurred 3. Determine the cost of goods manufactured Second Determine COGS (cost of goods sold) 1. Determine total goods available for sale 2. Determine cost of goods sold Third - Determine NI (net income) 1. Determine gross profit (or gross margin) 2. Determine net income Data for Legend Guitars Jan. 1, 2016 Dec. 31, 2016 Inventories $ 65,000 30,000 Materials Work in process Finished goods $ 35,000 24,000 62,500 $121,500 60,000 Total inventories Manufacturing costs incurred during 2016 $155,000 Materials Direct labor Factory overhead $100,000 110,000 Indirect labor Depreciation on factory equipment $ 24,000 10,000 Dr. Susan Eason, ACCT 2302