Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $1,187,000 38,000 58,000 64, 700 153,700 225,000 18, 800 55,000 5, 250 59,000 82,000 131,000 49,200 46,400 74,400 DELRAY MEG! $ 1,187,000 Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Finished goods inventory, December 31, 2016 $ 647,000 Cost of goods manufactured 647 000 Cost of goods available for sale Less: Finished goods inventory, December 31, 2017 Cost of goods sold Gross profit Operating expenses General and administrative expenses 647.000 540,000 131 000 82.000 Advertising expense Total operating expenses Operating income 213.000 327 000