Analyze the results of the quantitative analysis.Provide recommendations to management of Paisley Industries based on the results of their 2018 operations. Based on the following results:

Schedule of Raw Materials Placed in Production Year Ended

Raw materials inventory, beginning balance

$25,000 Add current period raw materials purchases

$295,000 Raw materials available for production

$320,000 Less raw materials inventory, ending balance

$19,000 Raw materials placed in production

$301,000 Less indeirect materials included in manufacturing overhead

$31,000 Direct materials placed in production

$270,000

Schedule of Cost of Goods Manufactured Year Ended

WIP Inventory, beginning balance

$1,645,000 Add current period manufacturing cots:

Direct Materials $270,000

Direct Labor $370,000

Manufacturing Overhead $1,885,000

Total current period manufacturing costs

$2,525,000 Total cost of work in process

$4,170,000 Less WIP Inventory, ending balance

$1,795,000 Cost of goods manufactured

$2,375,000

Schedule of Cost of Goods Sold Year Ended

Finished goods inventory, beginning balance

$1,225,000 Add cost of goods manufactured

$2,375,000 Cost of goods available for sale

$3,600,000 Less finished goods inventory, ending balance

$1,045,000 Cost of goods sold

$2,555,000

Income Statement Year Ended

Sales

$3,790,000 Cost of goods sold

$2,555,000 Gross profit

$1,235,000 Less operating (nonmanufacturing) expenses:

Selling

$265,000 General and administrative

$715,000 Operating profit

$255,000