Cost of Goods Sold, Income Statement Ellerson Company provided the following information for the last calendar year Beginning inventory: Direct materials $68,000 Work in process 29,400 Finished goods 43,200 Ending Inventory Direct materials $70,400 Work in process 50,000 Finished goods 42,100 During the year, direct materials purchases amounted to $280,000, direct labor cost was $189,000, and overhead cost was $525,000. During the year, 100,000 units were completed Last calendar year, Ellerson recognized revenue of $1,318,000 and had selling and administrative expenses of $204,800. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year. Ellerson Company Income Statement For the Year Ended December 31 Sales $ Cost of goods sold Gross margin $ Less: Selling and administrative expenses Operating income