These data are from Rasher Manufacturing Company’s books on October 31, 19X2:

Required:
Prepare a combined statement of cost of goods manufactured and income statement through the calculation of gross margin.

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In Thousands Debits Credits Direct labor. $22,000 Direct materials inventory, November 1, 19X1... 7,000 Finished goods inventory, November 1, 19X1 Work in process inventory, November 1, 19X1.. Factory overhead, actual.. 6,600 8,400 Purchases of direct materials Purchase discounts. Sales Sales discounts Other data: 8.900 15,000 $ 800 80,000 900 Direct materials inventory, October 31, 19X2...... Finished goods inventory, October 31, 19X2. Work in process inventory, October 31, 19X2. 5,600 4,800 9,200