For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month:

• Materials purchased: $20,000
  • Consumed 80% of the purchased materials
• Direct labor: $8,493
• Overhead costs: $3,765

Note: Assume that the beginning materials and ending work in process are zero for the month.

Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation.For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month.

Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory Direct Materials: Materials: Beginning Add: Purchases for month ofJanuanr Materials a1.rai lala lefor use Deduct; Ending materials Materials Used Direct Labor Duerl'lead Total Costs Deduct: Ending Work in Process Inventory Cost of Goods Sold \fEstablished Sales Price Number of Items Sold per Day 52c: 524 The other costs incurred by the business include: I General and administrative salaries r3 Receptionist: $1,950 I Office supplies: $200 I Other business equipment: $150 \f3 Milestone Two - Contribution Margin Analysis 4 5 6 COLLARS LEASHES HARNESSES 8 Sales Price per Unit S 20.00 S 22.00 S 9 Variable Cost per Unit 25.00 9.10 12.10 14.60 11 Contribution Margin S 10.90 S 9.90 S 12 10.40