PROBLEM 1 The information below has been taken from the cost records of T Co. for the past year: (use normal costing) Direct materials used in production $326 Direct labor 225 OH allocated @ 60% of DLS Actual OH 125 Cost of goods available for sale 826 Sales revenue 1000 Selling & administrative expenses Tax rate 20% Inventories: Beginning $75 80 Ending $ 85 Direct materials Work in process Finished goods 30 110 Prepare a statement of cost of goods manufactured & sold for T Co. You must compute DM purchased. Prepare the Income Statement