=+2-40 KK Income statement and schedule of cost of goods manufactured OBJECTIVE 5 The following items (in millions) pertain to Chan Ltd:

For specific date For year 2015 Work-in-process inventory, 1 January 2015 $18 Plant utilities $9 Direct materials inventory, 31 December 2015 8 Indirect manufacturing labour 27 Finished goods inventory, 31 December 2015 11 Depreciation—plant and equipment 6 Accounts payable, 31 December 2015 24 Revenues 355 Accounts receivable, 1 January 2015 52 Miscellaneous manufacturing overhead 15 Work-in-process inventory, 31 December 2015 3 Finished goods inventory, 1 January 2015 47 Marketing, distribution and customer service costs 94 Accounts receivable, 31 December 2015 38 Direct materials purchased 84 Accounts payable, 1 January 2015 49 Direct manufacturing labour 42 Direct materials inventory, 1 January 2015 32 Plant supplies used 4 Property taxes on plant 2 Chan’s manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labour and manufacturing overhead costs.

Required Prepare an income statement and a supporting schedule of cost of goods manufactured. (For additional questions regarding these facts, see the next problem.)