Complete solution and table:

The following data refer to Laredo Luggage Company for the year 20x2:

Sales revenue.......$475,000

Work-in-process inventory, December 31........15,000

Wark-in-process inventory, January 1.......20,000

Selling and administrative expenses.......75,000

Income tax expense......45,000

Purchases of raw material.....90,000

Raw-material inventory, December 31......12,500

Raw-material inventory, January 1......20,000

Direct labor......100,000

Utilities: plant.......20,000

Depreciation: plant and equipment......30,000

Finished-goods inventory, December 31......25,000

Finished-goods inventory, January 1.......10,000

Indirect material used........5,000

Indirect labor..........7,500

Other manufacturing overhead.....40,000

Required:

1. Prepare Laredo Luggage's schedule of cost of goods manufactured for the year.

2. Prepare Laredo Luggage's schedule of cost of goods sold for the year.

3. Prepare Laredo Luggage's income statement for the year.