A hysterical Ima Dunce corners you in the hallway 30 minutes before her accounting class. "Help me, help me!" Ima pleads. "I woke up this morning and discovered that Fifo and Lifo (two pet German Shepherds) ate my homework, and these shredded pieces are all that I have left!" Being a kind and generous soul, you willingly declare. "There is no need to fear! I am a real whiz at accounting and will be glad to help you." A relieved Ima Dunce hands you the following torn homework remnants.

a. Prepare T-accounts to show the flow of cost and determine each of the following: 

1. Marketing and administrative costs. 

2. Cost of goods sold. 

3. Beginning finished goods inventory. 

4. Direct materials used. 

5. Ending direct materials inventory. 

b. Prepare an income statement.

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Page 1 Direct labor-hours used 375 Direct labor rate - $5 per hour Direct materials purchased $5,250 Direct materials beginning inventory $1,400 Page 2 Actual manufacturing overhead... Inventory.... Beginning work in process Cost of goods manufactured.... 8,000 Ending finished goods inventory Page 3 Job remaining in ending work in process inventory: Labor Direct materials Overhead Ending work in process $ 500 1,300 200 ..$ 750 inventory. Total revenue 1,500 Gross margin Marketing and administrative costs 3,000 Operating profit $ 2,000 $13,500 4,000 1,000