$1.-$ Consider the following account balances $($in thousands$)$ for the Canseco Company:

Concepts Beginning of $200$x $($$$)$ End of $200$x $($$$)$

Direct materials inventory $22,00026,000$

Work$-$in$-$process inventory $21,00020,000$

Finished goods inventory $18,00023,000$

Concepts For Year $200$x $($$$)$

Purchases of direct materials $75,000$

Direct manufacturing labor $25,000$

Indirect manufacturing labor $15,000$

Plant insurance $9,000$

Depreciation, plant building and

equipment

$11,000$

Repairs and maintenance $($plant$)4,000$

Marketing, distribution, and customer$-$

service costs

$93,000$

General and administrative costs $29,000$

Required:

$1.-$ Calculate cost of goods manufactured for $200$x$,($using the $$T$$ account format or$/$and

the $$table$$ format shown in the theory slides$).$

$2.-.$ Prepare the income statement for $200$x$,$ calculate the total revenues needed to earn a

target gross margin of $56,333333\%$ over revenues