Lamson Company produces circuit boards that are used by manufacturers of microcom¬

puters. For 2001, Lamson reported the following:

Lamson produced 50,000 units during 2001 and sold 62,000 units at $12 per unit.
Required:
1. Prepare a statement of cost of goods manufactured.
2. Prepare an absorption-costing income statement.

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Work in process inventory, January 1 $ 12,500 Work in process inventory, December 31 12,500 Finished goods inventory, January 1 (24,000 units) 120,000 Finished goods inventory, December 31 (12,000 units) 60,000 Raw materials inventory, January 1 20,000 Raw materials inventory, December 31 30,000 Direct materials used 70,000 Direct labor 100,000 Plant depreciation 15,000 Salary, production supervisor 30,000 Indirect labor 20,000 Utilities, factory 6,000 Sales commissions 8,000 Salary, sales supervisor 20,000 Depreciation, factory equipment 5,000 Administrative costs 12,000 Supplies 4,000