Cost of Goods Manufactured, Income Statement Orman Company produces neon colored covers for tablets (eg, iPads). For last year, Orman reported the following: Work in process inventory, January 1 $ 13,360 Work in process inventory, December 31 28,220 Finished goods inventory, January 1 112,860 Finished goods inventory, December 31 84,750 Direct materials inventory, January 1 3,430 Direct materials inventory, December 31 2,970 Direct materials purchased 183,740 Direct labor 138,680 19,130 Plant depreciation Salary, production supervisor 46,640 68,270 Indirect labor 15,590 Utilities, factory 41,590 Sales commissions 74,940 Salary, sales supervisor 32,170 Depreciation, factory equipment 168,060 Administrative expenses Supplies (40% used in the factory, 60% used in the sales office 17,830 Advertising expense 43,210 Last year, Orman produced 89,140 units and sold 90,720 units at $10.40 per unit. Required: 1. Prepare a statement of cost of goods manufactured. Orman Company Statement of Cost of Goods Manufactured For Last Year Direct materials: Direct materials used in production $ Manufacturing overhead: $ Total manufacturing costs added S Total manufacturing costs added Cost of goods manufactured 2. Prepare an absorption-costing income statement. Orman Company Income Statement: Absorption Costing For Last Year Cost of goods sold: $ $ Less operating expenses: $ $