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 28,380 Finished goods inventory, January 1 113,040 Finished goods inventory, December 31 84,670 Direct materials inventory, January 1 3,400 Direct materials inventory, December 31 2,850 Direct materials purchased 184,280 Direct labor 137,950 Plant depreciation 19,010 47,090 68,270 Salary, production supervisor Indirect labor Utilities, factory Sales commissions 15,700 42,440 Salary, sales supervisor 75,390 Depreciation, factory equipment 32,230 167,940 Administrative expenses Supplies (40% used in the factory, 60% used in the sales office) 17,770 Advertising expense 43,050 Last year, Orman produced 88,690 units and sold 90,460 units at $10.80 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: 00 Qulill 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: JOO Less operating expenses