Chaos Manufacturing had the following financial information for the year ended December 31 2018: Inventory Balances: Beginning Ending Work in Progress $ 90,000 $ 80,000 Finished Goods $ 77,000 $ 67,000 Raw Materials $ 10,000 $ 30,000 During the year, the budgeted and actual costs were as follows: Note 2 3 Raw Materials Labour Depreciation Factory Equipment Depreciation Office Equipment Building Rent Maintenance - Factory Equipment Utilities - Electrical Utilities - Gas Utilities - Telecom Sales Commissions Advertising Shipping Total Actual 290,000 518,000 72,000 24,000 100,000 40,000 180,000 90,000 22,000 30,000 20,000 16,000 1,402,000 4 6 7 Sales for the year were $1,500,000 Note 1 - Raw material 90% of raw materials are traced directly to specific jobs, and the remaining 10% of raw materials are used throughout the production process and not traced. $290,000 in materials was purchased in the year. Note 2 - Labour Direct Labour $270,000 + Factory Salaries $85,000 + Head Office Salaries $163,000 = $518,000 Note 3 - Building Rent The building is shared between the factory and the administrative office. 68% of the building is related to the factory, and the remaining 32% is related to the administrative office. Note 4 - Utilities Electrical 90% of these costs are related to the factory, and 10% of these costs are related to the administrative office. Note 5 - Utilities - Gas All of the Gas is used to heat production equipment. Note 6 - Utilities - Telecom All of the Telecom costs are for sales people. Note 7 - Shipping All of the shipping costs are to ship finished goods to customers. Required: Prepare an income statement. You may include a schedule of Cost of Goods Manufactured and Cost of Goods Sold as separate schedule or as part of the Income Statement