Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

During 20x1, the company purchased \($240,000\) of raw material and spent \($420,000\) on direct labor.
Manufacturing overhead costs were as follows:

Sales revenue was \($1,210,000\) for the year. Selling and administrative expenses for the year amounted to \($105,000\). The firm's tax rate is 35 percent.

Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.

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Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 55,000 110,000 160,000 December 31, 20x1 $ 75,000 125,000 155,000