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1. Margaret Rosenthal, accountant for Russell Manufacturing Company, prepared the following income statement for the quarter ending December 31, 2019 Sales Purchases of materials (1)

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1. Margaret Rosenthal, accountant for Russell Manufacturing Company, prepared the following income statement for the quarter ending December 31, 2019 Sales Purchases of materials (1) Payroll (2) Advertising Administrative travel Manufacturing utilities Facility rental (3) Depreciation (4) $1,428,100 251,690 268,700 38,100 28,700 51,600 85,000 65,700 Sales commissions Annual insurance (manufacturing) Office utilities Management salaries (5) Net income 52,000 51,000 23,500 399,000 $ 113,110 Notes: (1) 80% of the materials were direct (2) 70% direct labour, 30% indirect labour (3) 80% related to manufacturing (4) 75% related to manufacturing (5) 30% related to manufacturing Furthermore, Rosenthal compiled the following information with respect to inventories for the quarter (note that the company does not maintain inventories of indirect materials) Beginning Ending Direct materials $ 7,420 $ 8,740 Work in process 8,620 10,000 Finished goods 11,830 7,750 Required: a. This part of the question is not part of your Connect assignment. b. Prepare a cost of goods manufactured statement for the quarter

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