E1-7B Tart Corporation has the following cost records for June 2020. Indirect factory labor $ 4,000 Factory utilities $ 1,000 Direct materials used 25,000 Depreciation, factory equipment 1,400 Work in process, 6/1/20 4,800 Direct labor 30,000 Work in process, 6/30/20 2,200 Maintenance, factory equipment 2,400 Finished goods, 6/1/20 5,000 Indirect materials 2,000 Finished goods, 6/30/20 9,500 Factory manager's salary 4,500 Instructions (a) Prepare a cost of goods manufactured schedule for June 2020. (b) Prepare an income statement through gross profit for June 2020 assuming net sales are $85,100. P1-5B Ortiz Company is a manufacturer of toys. Its controller resigned in August 2020. An inexperienced assistant accountant has prepared the following income statement for the month of August 2020. Ortiz Company Income Statement For the Month Ended August 31, 2020 Sales revenue $675,000 Less: Operating expenses Raw materials purchases $220,000 Direct labor cost 160,000 Advertising expense 75,000 Selling and administrative salaries 70,000 Rent on factory facilities 60,000 Depreciation on sales equipment 50,000 Depreciation on factory equipment 35,000 Indirect labor cost 20,000 Utilities expense 10,000 Insurance expense 5,000 705,000 Net loss $ (30,000)P1-5B continuation Prior to August 2020, the company had been profi table every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examin- ing other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of August were: August 1 August 31 Raw materials $19,500 $35,000 Work in process 25,000 21,000 Finished goods 40,000 52,000 2. Only 60% of the utilities expense and 70% of the insurance expense apply to factory operations; the remaining amounts should be charged to selling and administrative activities. Instructions (a) Prepare a cost of goods manufactured schedule for August 2020. (b) Prepare a correct income statement for August 2020