1. Consider the following account balances (in thousands) for the Kalinka Heavy Industries: End of 2016 Beginning of 2016 $ 372,000 519,000 720,000 $ 219,000 435,000 618,000 Kalinka Heavy Industries Direct materials inventory Work-in-process inventory Finished-goods inventory Purchases of direct materials Direct manufacturing labor Indirect manufacturing labor Plant insurance 786,000 Depreciation-plant, building, and equipment Plant utilities 651,000 291,000 27,000 135,000 78,000 36,000 195,000 375,000 213,000 Repairs and maintenance-plant Equipment leasing costs Marketing, distribution, and customer-service costs General and administrative costs Required: i. Prepare a schedule for the cost of goods manufactured for 2016. (20 points) Direct Materials Costs Direct Labour Manufacturing O/H Total Cost of Production Cost of the Goods Manufactured Cost of the Goods Available for Sale Cost of the Goods Sold Page 1 of 5 ii. Sales (in thousands) for 2016 were $5,200,000. Prepare the income statement for 2016. (10 points) Income Statement