1. Create an income statement for Gourmet bakers for the year ended December 31, 2018.

Balances: Beginning Ending

Direct Materials $13,500 $7,500

Work-in-Process Inventory 0 3,500

Finished Goods Inventory 0 5,200

Other information:

Direct materials purchases $

36,000

Plant janitorial services 700

Sales salaries 6,000

Delivery costs 1,300

Net sales revenue 107,000

Utilities for plant 1,300

Rent on plant 17,000

Customer service hotline costs 1,200

Direct labor 23,000