W$.$W$.$ Phillips Company produced $4,000$ leather recliners during the year. These recliners sell for $$400$ each. Phillips had $500$ recliners in finished goods inventory at the beginning of the year. At the end of the yeaf, there were $700$ recliners in finished goods inventory. Phillips' accounting records provide the following information:

purchase of raw material: $320,000,$ beginning material inventory: $46,800,$ ending materials inventory: $66,800,$ direct labor: $200,000,$ indirect labor: $40,000,$ rent $-$ factory building: $42,000,$ depreciation $-$ factory equipment: $60,000,$ utilities $-$ factory: $11,900,$ salary $-$ sales supervisor: $90,000,$ commissions $-$ salespersons: $180,000,$ general administration: $300,000,$ begin work in process inventory: $13,040,$ ending work in process inventory: $14,940,$ begin finished goods inventory: $80,000,$ ending finished goods inventory: $114,100$

$1.$ Prepare a statement of cost of goods manufactured.$$

$2.$ Compute the average cost of producing one unit of product in the year.$$

$3.$ Prepare an income statement for external users.$$

Answer: Check figure: Operating income $=$ $$332,100$