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) Sales commissions Annual insurance (manufacturing) Office utilities Management salaries (5) Net incone $1,450,100 253,890 269,500 38,500 29,100 52,400 89,000 66,500 56,000 55,000 23,900 403,000 $113,310 Notes: (1) 70% of the materials were direct (2) 60% direct labour; 40% indirect labour (3) 80% related to manufacturing (4) 80% related to manufacturing (5) 40% 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). Direct materials: Beginning $7,620 Work in process 9.920 Finished goods 12,030 Required: Ending $ 9,060 10,220 7,870 act assignment 2. Prepare a cost of goods manufactured statement for the quarter. RUSSELL MANUFACTURING COMPANY Cost of Goods Manufactured Statement For the Quarter Ending December 31, 2019 Direct materials: Direct materials available for use Direct materials used Overhead Total manufacturing costs Total work-in-process Cost of goods manufactured 3. Prepare a revised income statement for the quarter. RUSSELL MANUFACTURING COMPANY Income Statement For the Quarter Ending December 31, 2019 Cost of goods sold: Goods available for sale Cost of goods sold Deduct: Selling and administrative expenses 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 $1,450,100 253,890 269,500 38,500 29,100 52,400 Facility rental (3) 89,000 Depreciation (4) 66,500 Sales commissions 56,000 Annual insurance (manufacturing) 55,000 Office utilities 23,900 Management salaries (5) 403,000 Net income $113,310 Notes: (1) 70% of the materials were direct (2) 60% direct labour; 40% indirect labour (3) 80% related to manufacturing (4) 80% related to manufacturing (5) 40% 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 Direct materials $7,620 Work in proc 8,820 Finished goods 12,030 Ending $ 9,060 10,320 7.8701