Chaos Manufacturing had the following financial information for the year ended December 31 2018:

Inventory Balances:BeginningEnding

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

Actual

Raw Materials

1

290,000

Labour

2

518,000

Depreciation Factory Equipment

72,000

Depreciation Office Equipment

24,000

Building Rent

3

100,000

Maintenance - Factory Equipment

40,000

Utilities - Electrical

4

180,000

Utilities - Gas

5

90,000

Utilities - Telecom

6

22,000

Sales Commissions

30,000

Advertising

20,000

Shipping

7

16,000

Total

1,402,000

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:

Make 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.