Cost of Goods Manufactured, Income Statement Vasani House Company produces numerous fabrics for use in automobile, airplane, and boat seats. For last year, Vasani House reported the following: Work in process inventory, January 1 $ 28,750 23,250 46,500 49,000 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 12,050 13,550 241,000 Direct labor 485,000 Plant depreciation Salary, production supervisor 75,900 88,100 58,800 Indirect labor Utilities, factory 40,700 62,000 Sales commissions 75,000 28,000 Salary, sales supervisor Depreciation, factory equipment Administrative expenses Supplies (70% used in the factory, 30% used in the sales office) 288,600 80,000 Advertising expense 53,400 Last year, Vasani House produced 6,800 units and sold 7,000 units at $250 per unit. 1. Prepare a statement of cost of goods manufactured. Vasani House Company Statement of Cost of Goods Manufactured For Last Year Direct materials: Beginning inventory 12,050 Add: Purchases 241,000 Less: Ending inventory 13,550 Direct materials used in production $ 241,000 Direct labor 485,000 Manufacturing overhead: Plant depreciation Salary, production supervisor 75,900 88,100 Indirect labor 58,800 Utilities, factory 40,700 Depreciation, factory equipment 28,000 Supplies 7,000 298,500 $ Total manufacturing costs added Add: Beginning work in process 28,750 Less: Ending work in process 23,250 Cost of goods manufactured 2. Prepare an absorption-costing income statement. Vasani House Company Income Statement: Absorption Costing For Last Year Sales Cost of goods sold: $ $ $ Less operating expenses: $