Accounting Question:

Follow the tables form EXACTLY, which is attached in the pictures:

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*Problem 14-5A Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 793,900 Less: Operating expenses Raw materials purchases 264,800 Direct labor cost 188,400 Advertising expense 91,800 Selling and administrative salaries 76,400 Rent on factory facilities 62,000 Depreciation on sales equipment 44,000 Depreciation on factory equipment 32,800 Indirect labor cost 29 000 11,800 Utilities expense Insurance expense 8,500 809,500 15,600 Net loss Prior to October 2017, the company had been profitable every month. The company's president is concemed about the accuracy of 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 20,300 35,900 Work in process 15,000 20,100 Finished goods 29,700 53,500 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities