Dalal Company produced 150,000 floor lamps during the past calendar year. These lamps sell for $50 each. Dalal had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. Dalal’s accounting records provide the following information:

Required:
1. Prepare a cost of goods manufactured statement.
2. Compute the cost of producing one floor lamp last year.
3. Prepare an income statement on an absorption-costing basis.

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Purchases of direct materials $1,550,000 Direct materials inventory, January 1 290,000 Direct materials inventory, December 31 112,000 Direct labor 2,000,000 Indirect labor 790,000 Depreciation, factory building Depreciation, factory equipment Property taxes on the factory Utilities, factory Insurance on the factory Salary, sales supervisor Commissions, salespersons General administration Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 1,100,000 630,000 65,000 150,000 200,000 85,000 490,000 390,000 450,000 750,000 107,500 489,000