50. Income Statement and Supporting Schedules. The following nancial information is for Caravelli Company. (Note that the most current nancial information is presented in the rst column.) December 31, 2016 December 31, 2015 Raw materials inventory $ 24,000 $ 30,000 Work-in-process inventory 1,800,000 1,650,000 Finished goods inventory 1,050,000 1,230,000 0f the total raw materials placed in production for the year, $36,000 was for indirect materials. The company had $3,795,000 in sales for the year ended December 31, 2016. The company also had the following costs for the year: Selling $ 270,000 General and administrative $ 720,000 Raw materials purchases $ 300,000 Direct labor used in production $ 375,000 Manufacturing overhead $1,890,000 Required: a. Prepare a schedule of raw materials placed in production for the year ended December 31, 2016. b. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2016. c. Prepare a schedule of cost of goods sold for the year ended December 31, 2016. (1. Prepare an income statement for the year ended December 31, 2016. e. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.) Caravelli Company Schedule of Raw Materials Placed in Production Year Ended December 31 21116 Raw materials inventory, beginning balance Add current period ravir materials purchases Raw materials available for production Less rav.r materials inventory, ending balance Raw materials placed in production Less indirect materials included in manufacturing overhead Direct materials placed in production Caravelll Company Schedule of Cost of Goods Manufactured Year Ended December 31 11116 WlP inventory, beginning balance Add current period manufacturing costs: Direct materials Direct labor Manufacturing overhead Total current period manufacturing costs Total cost of work in process Less WIP inventory, ending balance Cost of goods manufactured Caravelli Company Schedule of Cost of Goods Sold Year Ended December 31 21116 $2 385 DOD |i Finished goods inventory, beginning balance Add cost of goods manufactured Cost of goods available for sale Less nished goods inventory, ending balance Cost of goods sold Caravelli Company Income Statement Year Ended December 31 21116 $2 565 DOD |i Sales Cost of goods sold Gross prot Less operating (nonmanufaeturing) expenses: Selling General and administrative Operating profit