Income statement and schedule of cost of goods manufactured. The following items 2

(in millions) pertain to the Chan Corporation:

Chan’s manufacturing cost system uses a three-part classification of manufacturing costs. There are two prime costs and one conversion cost: direct materials, direct manufacturing labour, and indirect manufacturing 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.)LO1

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For Specific Date Work in process, January 1, 2009 Direct materials, December 31, 2009 Finished goods, December 31, 2009 $10 5 12 Accounts payable, December 31, 2009 Accounts receivable, January 1, 2009 20 Revenues 50 Work in process, December 31, 2009 2 Plant utilities For Year 2009 Indirect manufacturing labour Amortization-plant building and equipment Miscellaneous manufacturing overhead Marketing, distribution, and customer-service costs $ 5 20 20 350 10 10 90 Finished goods, January 1, 2009 40 Purchases of direct materials Accounts receivable, December 31, 2009 30 Direct manufacturing labour 40 Accounts payable, January 1, 2009 40 Plant supplies used Direct materials, January 1, 2009 30 Property taxes on plant 1846- 80