Farley Muffler Inc. received the following report from its newly hired accountant, who quit after only a week on the job. Farley Muffler Inc. Cost of Goods Sold Schedule December 31, 2019 year end Finished Goods Inventory (beginning) Work-in-Process Inventory (beginning) Total $21,000 5.000 $26.000 Current Manufacturing Costs: Salaries and wages: Direct manufacturing labour Indirect manufacturing labour Sales salaries Administrative $6,000 3.000 7,000 1.400 $17,400 28.500 $54,500 Other: Manufacturing supplies $1,900 Manufacturing amortization 2,500 Insurance on showroom 1.200 Miscellaneous factory overhead 5.500 11.100 Total Work in Process Ending Work-in-Process and Finished Goods Inventory Cost of Goods Sold Farley Muffler, Inc. Income Statement December 31, 2019 year end Sales Less direct materials Gross profit $54,500 $150,000 25.000 $125,000 Less other expenses: Cost of goods sold (from COGS schedule) $54,500 Office supplies 750 Manufacturing utilities 900 Office utilities 850 Operating income 57.000 $68.000 Required (parts a & b): a) Prepare a schedule of cost of goods manufactured for Farley for the year ended December 31, 2019. Notes: Headings of financial statements are not required and you are welcome to use short-forms for all words. (5 marks) Assignment #1 b) Prepare an income statement, in traditional format, for the year ended December 31, 2019. Note: Headings of financial statements are not required. Notes: Headings of financial statements are not required and you are welcome to use short-forms for all words