$793.700 SHERIDAN COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less Operating expenses Raw materials purchases $263,100 Direct labor cost 188,200 Advertising expense 92.800 Selling and administrative salaries 77.800 Rent on factory facilities 1700 Depreciation on sales equipment 44,100 Depreciation on factory equipment 32.100 Indirect labor cost 30.000 Utilities expense 11/400 Insurance expense 3.700 Netlos 810.200 5616 500) Prior to October 2020, the company had been profitable every month. The company president is concerned about the accuracy of the income statement. As her friend, you have been led to review the income statement and make necessary corrections. Alter mining other manufacturing costat you have red additional information as follows 1. Inventory balances at the beginnitad end of October were water Work in proces ished on October $20,700 20.000 22.700 October 31 $35,800 14 000 SO Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy 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 $20,700 $35,800 Work in process 20,800 14,000 Finished goods 29,700 53,800 2. Only 75% of the utilities expense and 62% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. ca October Direct Materials Raw Materials inventory, October 1 Raw Materials Purchases Total Raw Materials Available for Use Add Total Raw Materials Available for Use & Add