3. Prepare On Company's income statement for December Note: If an amount should be subtracted, begin entry with a minus (-) sign. On Company Income Statement For the Month Ended December 31 Sales Cost of goods sold: Finished goods Inventory, December 1 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31 Cost of goods sold Gross profit X Operating expenses . -165,500 Net income Funda Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: On Off Company Company Materials inventory, December $86,220 $110,300 Materials inventory, December 31 (a) 124,715 Materials purchased 218,900 (a) Cost of direct materials used in production 252,120 (b) Direct labor 325,019 248,290 Factory overhead 100,990 123,590 Total manufacturing costs incurred in December (1) 713,860 Total manufacturing costs 843,540 929,820 Work in process inventory, December 1 165,520 265,940 Work in process inventory, December 31 139,630 (c) Cost of goods manufactured (c) 707,280 Finished goods inventory, December 1 145,690 123,570 Finished goods inventory, December 31 152.570 ( 1,270,700 1,103,540 Cost of goods sold (d) 713,850 Gross pro Operating expenses 165,500 Net income (1) 245,130 Sales RSSSS 8