1. Prepare a schedule for the cost of goods manufactured for 2017

2. Revenues for 2017 were $280 million. Prepare the income statement for 2017.

Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.

Cole Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
Direct materials used
Direct manufacturing labor

	Beginning of	End of
Cole Company	2017	2017
Direct materials inventory	25,000	29,000
Work-in-process inventory	28,000	21,000
Finished-goods inventory	15,000	26,000
Purchases of direct materials		78,000
Direct manufacturing labor		22,000
Indirect manufacturing labor		19,000
Plant insurance		9,000
Depreciationplant, building, and equipment		18,000
Repairs and maintenanceplant		5,000
Marketing, distribution, and customer-service costs		111,000
General and administrative costs		20,000