An Introduction to Cost Terms and Purposes Cost of goods manufactured, income statement, manufacturing company Free work cells Answer cells Consider the following account balances (in thousands) for the Carolina Corporation: Beginning of 2017 136,400 190,300 264,000 Carolina Corporation Direct materials inventory Work-in-process inventory Finished-goods inventory Purchases of direct materials Direct manufacturing labor Indirect manufacturing labor Plant insurance Depreciation-plant, building, and equipment Plant utilities Repairs and maintenance-plant Production equipment leasing costs Marketing, distribution, and customer-service costs General and administrative costs Revenues End of 2017 76,650 152,250 216,300 275,100 227,850 101,850 9,450 47,250 27,300 12,600 68,250 131,250 74,550 1,365,000 1. Prepare a schedule for the cost of goods manufactured in 2017. Carolina Corporation Schedule of Cost of Goods Manufactured Year Ended December 31, 2017 (in thousands) Direct materials costs: Direct materials used Direct manufacturing labor costs Manufacturing overhead costs: Total manufacturing overhead costs Manufacturing costs incurred during 2017 Beginning Work-in-process inventory Total manufacturing costs to account for Ending Work-in-process inventory Cost of goods manufactured 2. Prepare the income statement for 2017. Carolina Corporation Income Statement Year Ended December 31, 2017 (in thousands) Cost of goods sold: Cost of goods sold Gross margin Operating costs: Total operating costs Operating income (loss)