A Company	B Company
Materials inventory Dec 1	$ 75,800	$ 175,300
Materials inventory Dec 31	(a)	81,140
Materials Purchased	292,800
Cost of direct materials used in production	327,800	(b)
Direct labor	397,800	567,220
Factory Overhead	158,400	246,060
Total Manufacturing costs incurred in December	(b)	1,509,000
Total manufacturing costs	983,000	1,717,320
Work in process inventory Dec 1	129,000	198,320
Work in process inventory Dec 31	182,200	(c)
Cost of goods manufactured	(c)	1,522,020
Finished goods inventory Dec 1	234,000	259,0808
Finished goods inventory Dec 31	207,400	(d)
Sales	1,137,000	1,934,320
Cost of goods sold	(d)	1,534,040
Gross profit	(e)	(e)
Operating expenses	127,600	(f)
Net income	(f)	154,920