Cost of goods manufactured and the income statement Below are general ledger account bal- ances of the Arch-A-Tech Engineering Products Company for the year ended December 31,1992. Any beginning inventory balances were taken from the company's general ledger on January 1,1992.

REQUIRED

a. Prepare a schedule of cost of goods manufactured.

b. Prepare an income statement.

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Administrative salaries ... Advertising Beginning finished goods inventory 1/1/92 Beginning work in process inventory 1/1/92 $ 600,000 150,000 150,000 95,000 Delivery expense for finished products 14,000 Direct labor for the period...... 520,000 Direct materials used during the period 506,000 Employee fringe benefits (60% of which is for factory employees) 180,000 Ending finished goods inventory 180,000 Ending work in process inventory 100,000 Factory fire insurance.. 11,000 Factory property tax 26,000 Factory supervision 135,000 Indirect labor..... 65,000 Indirect materials 42,000 Office equipment depreciation 5,000 Office fire insurance 4,500 Production equipment depreciation 32,000 Sales...... 3,125,000 Sales returns and allowances 64,000 Sales salaries 200,000