IBM Corporation:

• August 2025 Costs:
  • Direct materials: $540,000
  • Direct labor: $340,000
  • Factory overheads: $300,000
  • Selling expenses: $200,000
  • Administrative expenses: $160,000
  • Units produced and sold: 38,000 units
  • Sales revenue: $1,900,000

Requirements:

1. Prepare a cost of goods manufactured statement.
2. Calculate the cost of goods sold.
3. Compute the gross profit.
4. Determine the net profit.