Chaos Manufacturing had the following financial information for the year ended December 31 2018 Inventory Balances: Work in Progress Finished Goods Raw Materials Beginni $90,000 77,000 10,000 Ending 80,000 67,000 10,000 During the year, the budgeted and actual costs were as follows Note Actual 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 290,000 518,000 72,000 24,000 100,000 40,000 180,000 90,000 22,000 30,000 20,000 16,000 402,000 4 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 Actual: 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- Shippin 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