Cost of Goods Sold, Income Statement Ellerson Company provided the following information for the last calendar year: Beginning inventory: Direct materials $69,000 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 $520,000. During the year, 100,000 units were completed. Last calendar year, Ellerson recognized revenue of $1,315,000 and had selling and administrative expenses of $204,800. Required: 1. What is the cost of goods sold for last year? $ 960,200 X 2. Prepare an income statement for Ellerson for last year. Ellerson Company Income Statement For the Year Ended December 31 Sales 1,315,000 Cost of goods sold 960,200 Gross margin 354,800 X Less: Selling and administrative expenses 204,800 Operating income 150,000 X