Answer the following all Question No. 1 (20 marks; 30-40 minutes) October 2018. An inexperienced assistant accountant has prepared the Phillips Company is a manufacturer of computers. Its controller resigned in following income statement for the month of October 2018. Phillips Company Income Statement For the Month Ended October 31, 2018 $780,000 $264,000 190,000 90,000 75,000 60,000 45,000 31,000 28,000 12,000 8,000 803,000 $ (23,000) Sales revenue Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost 751. Utilities expense Col. Insurance expense Net loss Prior to October 2018, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statemen and make necessary corrections. After examining other manufacturing cos data, you have acquired additional information as follows. Inventory balances at the beginning and end of October were: October 1 October 30 Raw materials $18,000 $29,000 Work in process 16,000 14,000 Finished goods 30,000 45,000 Only 75% of the utilities expense and 60% of the insurance expense apply factory operations. The remaining amounts should be charged to selling a administrative activities. Instructions a. Prepare a schedule of cost of goods manufactured for October 2018 b. Prepare a correct income statement for October 2018