A Company manufactures custom all-terrain vehicles (ATVs) and uses a Job Order Costing System to assign and track costs.

Marchs Beginning Inventory consisted of the following components:

Materials Inventory $65,000;

Work in Process Inventory $27,000;

Finished Goods Inventory $80,000;

The above Beginning Work in Process consisted only of Job A;

The Finished Goods Inventory consisted of Job B for $42,500; and Job C for $37,500;

The following descriptions summarise the various transactions that occurred during March:

All Sales are for Cash at time of shipment and amounted to: $625,000

Materials Purchase $112,000;

Materials used into production $117,000 are used as follows:

$95,000 consisted of parts and other materials directly assigned to ATVs;

The remainder was indirect material for small supplies and items that are not directly traceable to specific ATVs;

Total Wages and Salaries were $225,000 and were attributable as follows:

60% to Direct Labour;

10% to Indirect Labour;

5% to Sales Commissions;

25% to General & Administrative costs;

Depreciation for the period totalled to $28,000

75% of this amount related to factory & factory equipment & is contemplated into Factory MOH rates;

25% is related to General & Administrative costs;

Other General % Administrative costs, excluding Wages and Depreciation, totalled to $15,000;

Other Factory MOH, excluding Indirect Materials, Wages, & Depreciation, totalled to $35,500;

A Company applies Factory MOH at 75% of Direct Labour Costs;

The Ending Work in Process Inventory consisted of two Jobs:

Job D for $25,500: Job E for $21,500;

There were no Ending Finished Goods Inventory;

Income taxes of $50,000 were incurred during March;

Prepare T-accounts showing how the above costs flow through the accounting system;

For simplicity, assume that all is settled with Cash;

Use the above information to construct an Income Statement for March;