1. ABC Manufacturing Inc. is a leading company in the automotive sector. For the fiscal year 2023, the company reports the following financial data:

Ledgers:

• Direct Materials Purchased: $2,500,000
• Direct Labor Costs: $1,800,000
• Manufacturing Overhead: $1,200,000
• Indirect Labor: $300,000
• Depreciation Expense: $150,000

Income Statement Requirements:

• Prepare ABC Manufacturing Inc.'s income statement for the year ended December 31, 2023.
• Calculate the Cost of Goods Sold (CGS) and Gross Profit Margin.
• Determine the Operating Income before taxes.

Other Requirements:

• Prepare the necessary entries to close the income statement accounts to Retained Earnings.
• Calculate the company's Tax Expense using an effective tax rate of 25%.
• Prepare a Trial Balance as of December 31, 2023, ensuring it balances.