The following information is for Richard Manufacturing Company.

Required:

a. Prepare a cost of goods manufactured schedule.

b. Prepare a multiple-step income statement in good form.

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Inventory information: Raw materials inventory Work-in-process inventory Finished goods inventory January 1, 2005 December 31, 2005 $14,000 $16,000 25,000 28,000 32,000 36,000 Other information: Sales Direct materials purchases $790,000 162,000 Direct labor cost Manufacturing overhead 140,000. 234,000 Selling expense 72,000 Administrative expense 57,000