Concord Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. CONCORD COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $794,900 Less: Operating expenses Raw materials purchases $264,400 Direct labor cost 190,400 Advertising expense 92,300 Selling and administrative salaries 76,200 Rent on factory facilities 62,100 Depreciation on sales equipment 44,000 Depreciation on factory equipment 32,100 Indirect labor cost 29,700 Utilities expense 12,700 Insurance expense 8,600 812,500 Net loss $(17,600) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $20,700 $35,600 Work in process 21,000 14,700 Finished goods 29,400 53,500 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Prepare a schedule of cost of goods manufactured for October 2020. CONCORD COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 Work in Process Inventory, October 1 Direct Materials Raw Materials Inventory, October 1 Raw Materials Purchases Total Raw Materials Available for Use 20700 264400 285100 Less Raw Materials Inventory, October 31 35600 i Direct Materials Used Direct Labor Manufacturing Overhead Factory Facility Rent 62100 Depreciation on Factory Equipment 32100 Indirect Labor Factory Utilities Factory Insurance Total Manufacturing Overhead Total Manufacturing Costs Total Cost of Work in Process Less Work in Process Inventory, October 31 29700 9525 5160 249500 190400 138585 per 1 er 1 or Use CONCORD COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 20700 264400 285100 ventory, October 31 35600 i 62100 32100 ment Inventory, October 31 29700 9525 5160 $ 249500 190400 138585 21000 578485 599485 14700 i $ 584785 Prepare a correct income statement for October 2020. eTextbook and Media CONCORD COMPANY Income Statement $ $