HW 2 nts: ACG 2071- CRN 80678- Intro to Managerial Accounting Mallory Lapp Jewelry, Inc., purchases diamonds from a large manufacturer and sells them at the retail level. The diamonds cost, on the average, $1,508 each from the manufacturer. Mallory Lapp Jewelry, Inc., sells the diamonds to its customers at an average price of $2,800 each. The selling and administrative costs that the company incurs in a typical month are presented below Costs Cost Formula Selling: Advertising Sales salaries and commissions Delivery of diamonds to customers Utilities Depreciation of sales facilities $966 per month $4,774 per month, plus 6% of sales S61 per piano sold $652 per month $4,936 per month Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $13,422 per month $687 per month $2,468 per month, plus $39 per piano sold $890 per month During August, Mallory Lapp Jewelry, Inc., sold and delivered 59 diamonds. Required: 1. Prepare an income statement for Mallory Lapp Jewelry, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number) Mallory Lapp Jewelry, Inc. Traditional Income Statement