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 $ 13,120 Work-in-process inventory, December 31 28,300 Finished goods inventory, January 1 112,490 Finished goods inventory, December 31 85,250 Direct materials inventory, January 1 3,230 Direct materials inventory, December 31 2,670 Direct materials purchased 184,420 Direct labor 138,160 Plant depreciation 19,570 Salary, production supervisor 47,400 Indirect labor 68,050 Utilities, factory 15,520 Sales commissions 42,320 Salary, sales supervisor 74,560 Depreciation, factory equipment 32,080 Administrative expenses 167,880 Supplies (40% used in the factory, 60% used in the sales 18,000 office) Advertising expense 43,120 Last year, Orman produced 88,770 units and sold 90,990 units at $11.00 per unit. 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 A 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