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 $793,400 Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense Net loss $263,700 189,400 92,700 77,400 62,700 44,100 32,500 28,400 12,200 8,700 811,800 $(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 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 Raw materials Work in process Finished goods $20,900 19,100 31,000 October 31 $36,000 14,700 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. (a) Prepare a schedule of cost of goods manufactured for October 2020. EMPIRE COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 Finished Goods Inventory, October 1 Direct Materials Raw Materials Inventory, October 1 $ Raw Materials Purchases Total Raw Materials Available for Use Less : Raw Materials Inventory, October 31 Direct Materials Used $ Labor Manufacturing Overhead Factory Insurance Factory Utilities Depreciation on Factory Equipment Indirect Labor Factory Facility Rent Total Manufacturing Overhead Total Manufacturing Costs Total Cost of Work in Process Less : Work in Process Inventory, October 31 Cost of Goods Manufactured $ Attempts: 0 of 1 used Submit Answer Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. (h)