In January 2019, Jane Joli started Warmers, a business manufacturing ladies’ scarves. Joli was so busy with the manufacturing side of the business that she did not take time to set up detailed accounting records; the business checkbook was her only record of accounting transactions. When cash came in, she deposited the receipts in the bank, and when invoices were due, she wrote checks to pay them. Now it is the end of the year and Joli would like to know how the business did during its first year of operation.
Joli asks for your help in summarizing the first year’s operations. A review of the checkbook yields the following information:
■ Raw materials purchases paid for totaled $90,000.
■ Wages paid to employees totaled $60,000, with payroll taxes relating to their wages of $6,000.
■ Factory supplies cost $2,000.
■ Utility bills paid totaled $2,200.
■ Repairs to factory equipment were $800.
■ Rent of $12,000 was paid on the factory building.

Discussions with the owner disclose that $2,000 of raw materials have been received and used in the manufacturing process but have not yet been paid because the invoice for the purchase is not due until next year. Joli has determined depreciation on the factory equipment for the year to be $1,000. An inventory taken on the last day of the year showed $2,500 of raw materials on hand, $4,500 of scarves partially completed, and $3,500 of finished scarves waiting to be sold.

INSTRUCTIONS
Prepare a statement of cost of goods manufactured for 2019 for Warmers.