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: $ 28,750 23,250 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 46,500 49,000 Direct materials inventory, January 1 12,050 13,550 Direct materials inventory, December 31 Direct materials purchased 241,000 Direct labor 485,000 75,900 Plant depreciation Salary, production supervisor Indirect labor 88,100 58,800 Utilities, factory 40,700 Sales commissions 62,000 Salary, sales supervisor 75,000 Depreciation, factory equipment 28,000 288,600 Administrative expenses Supplies (70% used in the factory, 30% used in the sales office) 80,000 Advertising expense 53,400 Last year, Vasani House produced 6,800 units and sold 7,000 units at $250 per unit. Required: 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 28,750 Add: Purchases 241,000 Less: Beginning work in process Direct materials used in production Ending inventory Manufacturing overhead: Direct labor Indirect labor Utilities, factory Depreciation, factory equipment Supplies Total manufacturing costs added inil Cost of goods manufactured 2. Prepare an absorption-costing income statement. Vasani House Company Income Statement: Absorption Costing For Last Year Cost of goods sold: Less operating expenses: 8