Barella Corporation incurred the following costs while manufacturing its product in 2022. Materials used in product $120 000 Advertising expense 45 000 Depreciation on plant 60 000 Property taxes on plant 19 000 Property taxes on store 7 500 Delivery expense 21 000 Direct labor 110 000

Salaries paid to machine maintenance workers 10 000 Sales commissions 35 000 Factory supplies used 23 000 Salaries paid to sales employees 40 000 Sales revenue 562 900 Tax rate

25%

Inventory data:

January 1

December 31 Work-in-process inventory $22,000 $15,500 Finished goods inventory

$65,000

$50,600

Instructions (a) Prepare the schedule of cost of goods manufactured. (24 points) (b) Prepare the schedule of cost of goods sold. (20 points) (c) Prepare the income statement. (20 points)