Jordan Company produces a chemical reagent used by medical laboratories. For 2007, Jordan reported the following:

Jordan produced 100,000 units during 2007 and sold 127,000 units at $6 per unit.

Required:
1. Prepare a statement of cost of goods manufactured.
2. Prepare an absorption-costing income statement.LO1

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Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 (24,000 units) Finished goods inventory, December 31 (12,000 units) Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials used Direct labor Plant depreciation Salary, production supervisor Indirect labor Utilities, factory Sales commissions $ 13,250 13,250 170,000 85,000 15,600 14,000 120,000 72,000 9,500 45,000 36,000 5,700 66,000 Salary, sales supervisor 40,000 Depreciation, factory equipment Administrative expenses $ 25,000 52,000 Supplies (half used in the factory, half used in the sales office) 4,000