Income statement and schedule of cost of goods manufactured. The following items (in millions) pertain to the Chan Corporation:

For Specific Date For Year 2007 Work in process,January 1, 2007 $12.00 Plant utilities $ 6.00 Direct materials, December 31, 2007 6.00 Indirect manufacturing labour 24.00 Finished goods, December 31, 2007 14.40 Amortization—plant, building, and equipment 10.80 Accounts payable, December 31, 2007 24.00 Revenues 420.00 Accounts receivable,January 1, 2007 60.00 Miscellaneous manufacturing overhead 12.00 Work in process, December 31, 2007 2.40 Marketing, distribution, and customer service costs 108.00 Finished goods,January 1, 2007 48.00 Purchases of direct materials 96.00 Accounts receivable, December 31, 2007 36.00 Direct manufacturing labour 48.00 Accounts payable,January 1, 2007 48.00 Plant supplies used 7.20 Direct materials,January 1, 2007 36.00 Property taxes on plant 1.20 Chan’s manufacturing cost system uses; a three--part classification of manufacturing costs:

direct materials, direct manufacturing labour, and indirect manufacturing costs.

62 CHAPTER 2 Required Prepare an income statement and a supporting schedule of cost of goods manufactured. (For additional questions regarding these facts, see the next problem.)