Cost of Goods Manufactured, Income Statement OBJECTIVE 4Define tangible and intangible products, and explain why there are different product cost definitions. OBJECTIVE 5Prepare income statements for manufacturing and service organizations. Vasani House Company produces numerous fabrics for use in automobile, airplane, and boat seats. For last year, Vasani House reported the following: Work-in-process inventory, January 1 Work-in-process inventory, December 31 $28,750 23,250 Finished goods inventory, January 1 46,500 Finished goods inventory, December 31 49,000 Direct materials inventory, January 1 12,050 Direct materials inventory, December 31 13,550 Direct materials purchased 241,000 Direct labor 485,000 Plant depreciation 75,900 Salary, production supervisor 88,100 Indirect labor Utilities, factory Sales commissions 58,800 40,7001 62,000 Salary, sales supervisor Depreciation, factory equipment Administrative expenses sales office) Advertising expense 75,000 28,000 288,600 80,000 53,400 Supplies (70% used in the factory, 30% used in the Last year, Vasani House produced 6,800 units and sold 7,000 units at $250 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement