Statement of cost of goods manufactured; cost of goods sold LO₄ The following data are taken from the general ledger and other records of Helena Manufacturing Co. on January 3 1 , the end of the first month of operations in the current fiscal year:

a. Prepare a statement of cost of goods manufactured.

b. Prepare the cost of goods sold section of the income statement.

Sales $75,000 Materials inventory (January I) 22,000 Work in process inventory (January I) 20,000 Finished goods inventory (January I) 30,000 Materials purchased 21 ,000 Direct labor cost 1 8,000 Factory overhead (including $1,000 of indirect materials used and $3,000 of indirect labor cost) 12,000 Selling and administrative expense 10,000 Inventories at January 3 1:

Materials 25,000 Work in process 24,000 Finished goods 32,000