Cost of Goods Manufactured, Income Statement

W.W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips' accounting records provide the following information:

1. Purchases of raw materials$320,000Salary, sales supervisor$ 90,000 Beginning materials inventory 46,800Commissions, sales persons 180,000 Ending materials inventory 66,800General administration 300,000 Direct labour 200,000Beginning work-in-process inventory 13,040 Indirect labour 40,000Ending work-in-process inventory 14,940 Rent, factory building 42,000Beginning finished goods inventory 80,000 Depreciation, factory equipment 60,000Ending finished goods inventory 114,100 Utilities, factory11,900