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		$ 13,320
Work-in-process inventory, December 31		28,250
Finished goods inventory, January 1		112,840
Finished goods inventory, December 31		85,210
Direct materials inventory, January 1		3,410
Direct materials inventory, December 31		2,700
Direct materials purchased		184,210
Direct labor		139,120
Plant depreciation		19,660
Salary, production supervisor		47,150
Indirect labor		68,040
Utilities, factory		15,630
Sales commissions		42,410
Salary, sales supervisor		74,670
Depreciation, factory equipment		32,010
Administrative expenses		167,680
Supplies (40% used in the factory, 60% used in the sales office)		18,320
Advertising expense		43,430

Last year, Orman produced 88,540 units and sold 90,630 units at $10.90 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:
	$
		$