I was informed my Net Income was low about $30,000. I cannot figure out why it is under by $30,000, I would appreciate a review of my Cost of Goods Manufactured and Income Statement with insight on why I am under about $30,000. The data was already provided.

DATA

Supervisor salary	128,000
Production supplies	16,000
WIP January 1	136,000
WIP December 31	141,000
Administrative salaries	402,000
Depreciation - factory	114,000
Direct Labor - factory	662,000
Water & Sewer - factory	1,300
Water & Sewer - administrative	1,100
Finished Goods - January 1	144,000
Finished Goods - December 31	159,000
Heat, light, & Power - factory	87,000
Marketing costs	195,000
Misc. factory costs	15,000
Factory maintenance and repairs	68,000
Insurance - manufacturing facility / factory	5,800
Direct Materials Purchases	504,000
Direct Materials - January 1	102,000
Direct Materials - December 31	81,000
Sales Revenue	2,488,000
Indirect labor	22,000
Heat, light, & Power - administrative	22,600
Depreciation - administrative	40,500
Selling costs	19,300
Factory security system	15,550
Property taxes - factory	6,600
Property taxes - administrative	2,000
Insurance - admistrative	4,150
TOTAL FACTORY OVERHEAD	461,950
TOTAL SELLING AND ADMINISTRATIVE	686,650

I was informed my Net Income was low about $30,000. I cannot figure out why it is under by $30,000, I would appreciate a review of my Cost of Goods Manufactured and Income Statement with insight on why I am under about $30,000. The data was already provided.

1 2 Alpha Corporation Statement of Cost of Goods Manufactured For the Year Ended December 31, 2017 3 4 5 5 6 7 Direct Materials Direct Materials - January 1 Add: Direct Materials Purchases Direct Materals Available Less: Direct Materials - December 31 Direct Materials Used Amount Amount 102000 504000 606000 81000 525000 8 9 10 11 12 13 Direct Labor - factory Prime Cost 662000 1187000 14 15 16 17 18 19 20 21 22 Factory Overhead Supervisor Salary Production Supplies Depreciation - Factory Water & Sewer - Factory Heat, light, & Power - factory Misc. factory costs Factory maintenance and repairs Insurance - manufacturing facility / factory Indirect Labor Factory Security System Property taxes - factory Factory/ Works Cost 128000 16000 114000 1300 87000 15000 68000 23 24 25 5800 22000 15550 26 6600 479250 27 1666250 28 29 Add: WIP January 1 Less: WIP December 31 Cost of Goods Manufactured 136000 -141000 30 -5000 31 1661250 22 B E D 1 Alpha Corporation 2 Income Statement 3 For the Year Ended December 31, 2017 4 Amount Amount 5 Sales Revenue 2488000 6 Less: Cost of Goods Manufactured -1661250 7 Gross Profit 826750 8 9 Less: Selling & Administrative Overheads 10 Administrative Salaries 402000 11 Water & Sewer - Administrative 1100 12 Marketing Costs 195000 13 Heat, light, & Power - Administrative 22600 14 Depreciation - Administrative 40500 15 Selling Costs 19300 16 Property Taxes - Administrative 2000 17 Insurance - Admistrative 4150 -686650 18 140100 19 Add: Finished Goods - January 1 144000 20 Less: Finished Goods - December 31 -159000 - 15000 21 Net Income 125100 22 23