2. Classifying Costs, Calculating Cost of Goods Manufactured, and Preparing an Income Statement.

Madison Company has the following information available:

Cost	Amount	Cost	Amount
Factory Utilities	3,000	Depreciation Factory Equipment	4,000
Factory Maintenance	1,100	Indirect Labor	15,550
Production Supervisors Salary	48,990	Direct Labor Wages	50,000
Sales Commissions	14,000	Direct Material Purchases	120,000
Presidents Salary	98,000	Depreciation-Office Equipment	2,000
Office Utilities	1,500	Factory Insurance	3,800
Accounts Receivable	12,500	Cash	62,300
Office Salaries	15,650	Factory Rent	17,775

Other information includes:

Inventory	Beginning	Ending
Raw Materials	36,800	62,750
Work In Process	52,500	86,210
Finished Goods	70,250	89,680

Instructions:

1. Prepare a Cost of Goods Manufactured Schedule
2. Prepare an Income Statement (Net Sales = $420,000)
3. Prepare a current assets section of the balance sheet