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. $780,000 EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less: Operating expenses Raw materials purchases $264,000 Direct labor cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60.000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labor cost 28,000 Utilities expense 12.000 Insurance expense 8,000 803,000 Net loss $123.000) Net loss $123,000) Prior to October 2020, the company had been profitable 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 examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: Raw materials October 1 October 31 $18.000 $29,000 20,000 14,000 30,000 50.000 Work in process Finished goods 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, - Your answer is partially correct. Prepare a schedule of cost of goods manufactured for October 2020 EMPIRE COMPANY MacBook Air BO DOT DOB 14 23 A $ 4 % 5 & 7 2 3 6 8 9 0 W o E R Y T U S D F G H J L C V . N M V - e command command op EMPIRE COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 Work in Process Inventory, October 1 Direct Materials Raw Materials Inventory, October 1 207.000 Raw Materials Purchases 264.400 Total Raw Materials Available for Use 285.100 Less Raw Materials Inventory, October 31 35.600 Direct Materials Used 249.500 Direct Labor 190,400 Manufacturing Overhead Factory Facility Rent 62.100 Depreciation on Factory Equipment 32.100 Income statement for October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales Revenue 794 900 Cost of Goods Sold Finished Goods Inventory, October 1 29,400 Cost of Goods Manufactured 584,785 Cost of Goods Available for Sale 614,185 Less Finished Goods Inventory, October 31 53,500 Cost of Goods Sold 560,685 Gross Proht 234.215 Operating Expenses Advertising Expense 92.300