The following data are taken from the general ledger and other records of Phoenix Products Co. on October 31, the end of the first month of operations in the current fiscal year:
Sales.......................................................................................$90,000
Materials inventory (October 1)............................................ 22,000
Work in process inventory (October 1)................................. 20,000
Finished goods inventory (October 1)................................... 30,000
Materials purchased............................................................... 18,000
Direct labor cost.................................................................... 21,000
Factory overhead (including $1,000 of indirect materials
used and $4,000 of indirect labor cost).................................. 16,000
Selling and administrative expenses...................................... 15,000
Inventories at October 31:
Materials............................................................................... 25,000
Work in process.................................................................... 24,000
Finished goods..................................................................... 32,000
a. Prepare a statement of cost of goods manufactured.
b. Prepare the cost of goods sold section of the income statement.