3pA

Current Attempt in Progress Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $794 100 Less: Operating expenses Raw materials purchases $264,800 Direct labor cost 188,800 Advertising expense 92,100 Selling and administrative salaries 76,400 Rent on factory facilities 62.900 Depreciation on sales equipment 45,800 Depreciation on factory equipment 32,900 Indirect labor cost 29.100 Utilities expense 12.900 Insurance expense 8,300 814.000 Net loss $(19,900) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $20,300 $35,300 Work in process 19,800 14,700 Finished goods 30.800 53,200 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities (a) Prepare a schedule of cost of goods manufactured for October 2020 EMPIRE COMPANY Cost of Goods Manufactured Schedule s $ v v v V Saw for Later Attempts of 1 used SubmAD