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.

EMPIRE COMPANY

Income Statement

For the Month Ended October 31, 2020

Sales revenue$780,000Less:Operating expensesRaw materials purchases$264,000Direct labor cost190,000Advertising expense90,000Selling and administrative salaries75,000Rent on factory facilities60,000Depreciation on sales equipment45,000Depreciation on factory equipment31,000Indirect labor cost28,000Utilities expense12,000Insurance expense8,000803,000Net loss$(23,000)

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:

October 1

October 31

Raw materials$18,000$29,000Work in process20,00014,000Finished goods30,00050,000

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.

Make a schedule of cost of goods manufactured for October 2020.