Following information was taken from the Jamestown Metal Works for the year ended December 31, XXXX:

Sales $10,000,000

Finished goods inventory, Jan 1 $800,000

Finished goods inventory, Dec 31 $700,000

Raw materials inventory, Jan 1 $150,000

Raw materials inventory, Dec 31 $200,000

Raw materials purchases $1,000,000

Direct labor (20,000 hours at $30 @ hour) $600,000

Overhead applied at rate of $20 per DLH

Work in process inventory, Jan 1 $100,000

Work in process inventory, Dec 31 $125,000

Selling, general and administrative expenses $5,000,000

Required:

Prepare cost of goods manufactured schedule.

Prepare income statement with detailed cost of goods sold section.