Cost of Goods Manufactured, Income Statement Orman Company produces neon-colored covers for tablets (e.g., IPads). For last year, Orman reported the following: Work-in-process inventory, January 1 $ 13,370 Work-in-process inventory, December 31 28,330 Finished goods Inventory, January 1 113,620 Finished goods Inventory, December 31 84,550 Direct materials inventory, January 1 3,470 Direct materials inventory, December 31 2,830 Direct materials purchased 183,740 Direct labor 138,310 Plant depreciation 19,620 Salary, production supervisor 46,730 Indirect labor 68,360 Utilities, factory 15,550 Sales commissions 41,510 Salary, sales supervisor 74,600 31,690 Depreciation, factory equipment Administrative expenses 167,800 Supplies (40% used in the factory, 60% used in the sales office) 18,400 Advertising expense 43,180 Last year, Orman produced 89,270 units and sold 90,800 units at $11.00 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 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: BE