The following data refer to Laredo Luggage Company for the year 20x2:

Required:
1. Prepare Laredo Luggage's schedule of cost of goods manufactured for the year.
2. Prepare Laredo Luggage's schedule of cost of goods sold for the year.
3. Prepare Laredo Luggage's income statement for the year.

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Sales revenue. Work-in-process inventory, December 31.. Work-in-process inventory, January 1...... Selling and administrative expenses.. Income tax expense... Purchases of raw material... Raw-material inventory, December 31 Raw-material inventory, January 1. Direct labor.... $475,000 15,000 20,000 75,000 45,000 90,000 12,500 20,000 100,000 Utilities: plant.... 20,000 Depreciation: plant and equipment. 30,000 Finished-goods inventory, December 31... 25,000 Finished-goods inventory, January 1.... 10,000 Indirect material... 5,000 Indirect labor..... 7,500 Other manufacturing overhead... 40,000