Given Data: Congratulations, you have accepted a new position as the assistant controller with Buzz manufacturing! The controller, Tanya McDougall, has recently taken a 6 week medical leave. In her absence, Ben Hur, the financial accounting clerk, who has little experience in manufacturing accounting, prepared the following draft income statement for August. Buzz Company Income Statement For the month ended August 31 Sales $ 1,760,000 Less Operating expenses Advertising 194,600 Depreciation, factory equipment 119,600 Depreciation, sales equipment 117,600 Direct labour 205,600 Indirect labour 225,600 Insurance 116,600 Maintenance, factory 24,600 Purchases of raw materials 315,600 Rent on facilities 146,600 Selling and administrative salaries 145,600 Utilities costs 161,600 1,773,600 Operating income (loss) $ (13.600) $ Knowing that you have recently completed a managerial accounting course c Inventory balances at the beginning and end of Augus Algonquin college, the president of Buzz manufacturing has asked you the are provided below. the accuracy of their draft income statement. Additional information about the company follows: a. Only 80% of the rent on facilities applies to factory operations; the remain- der applies to selling and administrative activities. b. Some 75% of the insurance and 90% of the utilities cost apply to factory operations, the remaining amounts apply to selling and administrative activities. Allocation of Rent on facilities Raw materials inventory, August 1 $ 19,000 Factory operations 80% Raw materials inventory, August 31 46 000 Selling and administrative expense 20% Work in process inventory, August 1 77,000 Allocation of Insurance Work in process inventory, August 31 94,000 Factory operations 75% Finished goods inventory, August 1 22,000 Selling and administrative expense 25% Finished goods inventory, August 31 168.000 Allocation of Utilities Factory operations 90% Selling and administrative expense 10% Cost of goods manufactured 1. As one step in gathering data for the income statement, prepare a schedule of cost of goods manufactured for August. Buzz Company Schedule of Cost of Goods Manufactured For the Month Ended August 31 Direct materials Raw materials available for use Raw materials used in production Manufacturing overhead Total manufacturing overhead Total manufacturing costs Cost of goods manufactured As a second step, prepare a new income statement for the month. Buzz Company Income Statement For the Month Ended August 31 Sales Cost of goods sold Cost of goods available for sale Cost of goods sold Gross margin Selling and administrative expenses: Total selling and administrative expenses. Operating income (loss)