The following information is available for Yu Company for 2012:

Advertising expense
Depreciation expense - office equipment ...................... $ 42,500
Depreciation expense - factory equipment ....................... 13,800
Direct labor ......................................................... 115,000
Heat, light, and power - factory .................................... 3,600
Indirect labor ......................................................... 14,400
Materials purchased ................................................. 76,000
Office salaries expense ............................................. 46,800
Property taxes - factory .............................................. 2,500
Property taxes - headquarters building ............................. 8,400
Rent expense - factory ............................................... 4,000
Sales ..................................................................529,000
Sales salaries expense ............................................... 82,500
Supplies - factory ..................................................... 3,000
Miscellaneous cost - factory ........................................ 2,000
1. Prepare a 2012 Statement of cost of goods manufactured:
2. Prepare the 2012 income statement:

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Inventories Materials Work in process Finished goods January 1 $47,000 67,000 70,000 December 31 $58,500 59,000 62,000