3 Lisa's Ladders manufactures steel and wooden ladders for industrial and home use. You were hired as a management accounting consultant by Lisa and have been provided with the following information for the most recent year end:

Cost incurred

Advertising expense $42,000

Raw Materials used $124,000

Head office rent $12,000

Indirect Materials $31,500

Research cost for new products $15,000

Insurance on production equipment $5,500

Direct Labour $26,000

Rent on production facility $30,000

Cost of land purchased $225,000

Indirect labour $15,000

Inventory Level Beginning of Year End of Year Raw Materials

Raw materials $11,000 61,000

WIP $8,000 4,000

Finished goods 22,000 28,000

Requirements a) make a statment of cost of good manufactured (10 marks) b) Assume total sales for the year is $285,000, make an income statement (with Cost of good sold & period costs included) (5 marks)