Cost of Goods Manufactured, Income Statement Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: $ 13,270 28,100 112,140 85,210 3,280 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials purchased Direct labor Plant depreciation Salary, production supervisor 2,980 183,690 139,500 19,470 46,950 Indirect labor 68,150 15,740 41,830 Utilities, factory Sales commissions Salary, sales supervisor Depreciation, factory equipment 75,040 32,250 Administrative expenses 168,090 Supplies (40% used in the factory, 60% used in the sales office) 17,830 Advertising expense 43,380 Last year, Orman produced 89,380 units and sold 90,770 units at $10.70 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: Beginning inventory Add: Purchases Less: Ending inventory Direct materials used in production Direct labor Manufacturing overhead: Plant depreciation Salary, production supervisor Indirect labor Utilities, factory Depreciation, factory equipment Supplies Total manufacturing costs added Add: Beginning work in process $ Less: Ending work in process Cost of goods manufactured Utilities, factory Depreciation, factory equipment Supplies Total manufacturing costs added Add: Beginning work in process Less: Ending work in process Cost of goods manufactured 2. Prepare an absorption-costing income statement. Orman Company Income Statement: Absorption Costing For Last Year Sales Cost of goods sold: Beginning finished goods inventory Add: Cost of goods manufactured Goods available for sale Less: Ending finished goods inventory Gross margin Less operating expenses: Selling expenses Administrative expenses Operating income DO