Good Vibrations, Inc., produces videotapes of musical performances. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the companys cost of goods manufactured. You find the following data from records prepared by Good Vibrations, Inc., for the year ended 2009 December 31: Inventories: Beginning direct materials inventory, 2009 January 1 $6,000 Ending direct materials inventory, 2009 December 31 10,500 Beginning work in process inventory, 2009 January 1 10,000 Ending work in process inventory, 2009 December 31 9,500 Materials purchases 50,000 Direct labor 40,000 Indirect labor 15,000 Factory utilities expense 7,000 Factory supplies expense 5,000 Depreciation expense factory building 14,000 Depreciation expense Factory Equipment 10,500 Other manufacturing overhead 25,000 You also learn that beginning Finished Goods Inventory on 2009 January 1, was USD 20,000 and ending Finished Goods Inventory on 2009 December 31, was USD 5,000. Sales for the year were USD 400,000. Selling expenses were USD 50,000 and administrative expenses were USD 75,000.

a. Prepare a statement of cost of goods manufactured for Good Vibrations, Inc., for the year ended 2009 December 31.

b. Prepare an income statement for Good Vibrations, Inc., for the year ended 2009 December 31.