1.XYZ, a manufacturer of recyclable soft drink cans, had the following inventory balances at the beginning and end of the current year.

Inventory account	1 January	31 December
Direct raw material	$20 000	$40 000
Work in progress	140 000	130 000
Finished good	200 000	230 000

During the year, the company purchased $500 000 of direct raw material and spent $800 000 on direct labour and $550 000 on manufacturing overhead costs in total. Sales revenue was $2 210 000 for the year. Selling and administrative expenses for the year amounted to $220 000. The firms tax rate is 40 per cent.

Required:

1. Prepare a schedule of cost of goods manufactured for the year. (2 marks)

2. Prepare a scheduled of cost of goods sold for the year. (2 marks)

3. Prepare an income statement for the year. (2 marks)