Empire company is a manufacturer of smart phones. Its controller resigned in October 2020.

CALCULATOR Problem 1-5A (Video) Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. PRINTER VERSION LACK NEXT $793,400 EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less: Operating expenses Raw materials purchases $263,700 Direct labor cost 189,400 Advertising expense 92,700 Selling and administrative salaries 77,400 Rent on factory facilities 62,700 Depreciation on sales equipment 44,100 Depreciation on factory equipment 32,500 Indirect labor cost 28,400 Utilities expense 12,200 Insurance expense 8.700 Netlose $11,000 (18,400) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income atement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing out data, you have red additional information as follows. 1. Inventory balances at the beginning and end of October were October 1 October 31 Raw materials $20,900 $36.000 Work in process 19,100 14,700 Finished goods 31.000 53,500 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities Prepare a schedule of cost of goods manufactured for October 2020, EMPERE COMPANY Cost of Goods Manufactured Schedule Prepare a correct income statement for October 2020. EMPIRE COMPANY Income Statement $ Click if you would like to Show Work for this questions on Show Work