Design works International manufactures custom tiles.The following information relates to the fiscal year ending December 31, 2015

Beginning balance in raw material inventory $200,000

Purchases of raw material800,000

Ending balance in raw material inventory100,000

Beginning balance in work-in-process400,000

Ending balance in work-in-process200,000

Direct labor cost1,000,000

Manufacturing overhead applied500,000

Beginning balance in finished goods600,000

Ending balance in finished goods300,000

Sales4,000,000

Selling expenses250,000

General and administrative expenses550,000

Required

a.Prepare a schedule of cost of goods manufactured.Assume there is no indirect material costs.

b. Prepare and income statement for the fiscal 2015.Ignore income tax.