Believing something was not correct, the owners have hired you to review the accounting information and to report back to them. Exhibit One Delta Mountain Supplies Income Statement For the Quarter ended, December 31st Sales (6,000 sleeping bags) $750,000 Operating expenses: Selling and administrative salaries $63,000 Travel for sales purposes 45,000 Advertising 98,000 Indirect labour costs 97,000 Raw materials purchased 225,000 Plant supplies 5,000 Direct labour cost 70,000 Plant maintenance 38,000 Depreciation, office equipment 13,000 Rent (90% for the plant, 10% for sales space) 50,000 Insurance (Plant only) 6,000 Depreciation, Plant equipment 60,000 Utilities (80% plant, 20% for sales operations) 32,000 Total operating expenses 802,000 Operating loss $(52,000) During the quarter, the company completed 8,000 sleeping bags. The owners completed a physical inventory count and valuation on March 31 st. The opening and closing inventory values are as follows: October 1 st December 31 st Raw materials inventory $0 $30,000 Work-in-process inventory $0 $24,000 Finished goods inventory $0 ? Required: 1. Describe two conceptual errors that the "accountant" made in preparing the income statement shown in exhibit one 2. Prepare a schedule of the cost of goods manufactured for the quarter ending December 31st . 3. Prepare a corrected income statement for the quarter.