E1-7 Statement of cost of goods manufactured; cost of goods sold The following data are taken from the general ledger and other records of Valley View Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year: Sales. . $76,000 Materials inventory (January 1). . 25,000 Work in process inventory (January 1) 24,000 Finished goods inventory (January 1) . . . . 32,000 Materials purchased... 21,000 Direct labor cost. . .. . . . .. . . 18,001 Factory overhead (including $1.000 of indirect materials used and 12/000 $3,000 of indirect labor cost] Selling and administrative expenses. . . . . 1 1 10.000 Inventories at January 31: Materials. . .. 22/000 Work in process . . 20,000 Finished goods.... . . . .. 30,000 a. Prepare a statement of cost of goods manufactured. b. Prepare the cost of goods sold section of the income statement