Orlando Manufacturing Company makes camping equipment. Selected account balances (listed alphabetically) for this firm on December 31, 2016, the end of its fiscal year, are given below. Data about the beginning and ending inventories is also shown.

Accounts Balances

Depreciation-Factory Assets.............................................$ 9,000

Depreciation Expense-Office Assets......................................3,000

Direct Labor.................................................................,180,000

Freight In......................................................................12,000

Income Tax Expense.........................................................28,230

Indirect Labor.................................................................18,000

Indirect Materials and Supplies..............................................7,000

Insurance-Factory..........................................................12,000

Materials Purchases.........................................................325,000

Office Salaries Expense.....................................................30,000

Officers' Salaries Expense................................................150,000

Other Administrative Expenses.............................................1,800

Other Selling Expenses......................................................12,000

Payroll Taxes Expense-Administration.................................18,000

Payroll Taxes Expense-Factory..........................................19,800

Payroll Taxes Expense-Sales Salaries.....................................9,000

Property Taxes-Office.......................................................2,000

Property Taxes-Factory......................................................5,000

Purchases Returns and Allowances..........................................4,000

Repairs and Maintenance-Factory.........................................3,200

Repairs and Maintenance-Office..........................................1,000

Sales........................................................................1,105,000

Sales Returns and Allowances................................................5,000

Sales Salaries Expense.......................................................90,000

Inventory DataJan. 1, 2016Dec. 31, 2016

Finished Goods Inventory.................$30,000...................$32,000

Work in Process Inventory..................30,000.....................25,000

Raw Materials Inventory....................25,000.....................20,000

INSTRUCTIONS

1. Prepare a statement of cost of goods manufactured for 2016.

2. Prepare an income statement for 2016.

Analyze:

What percentage of cost of goods manufactured did the company spend on raw materials? On direct labor costs? On overhead costs?