II. Statement of Cost of Goods Manufactured. M-P Company Limited manufactures a single product. The treasurer has asked you to help in preparing a manufacturing statement for the month ended March 31, 2005. You are given the following information: Sales = 10,000 units @ $20.00 per unit Production = 12,000 units Finished goods inventory, March 1, 2005 = 3,000 units valued @ $16.00 each Raw materials inventory, March 1, 2005 = 1,000 units valued @ $5.00 each Purchases of raw materials, March 4 = 8,000 units @ $6.00 each March 20 =5,000 units @ $5.00 each The company uses FIFO method of determining raw materials inventories In-process inventory, March 1, 2005 = 2,000 units valued @ $16,000 March 31, 2005 = 2,000 units valued @ $21,000 Fixed assets Machinery $240,000 original cost Office equipment $6,000 original cost Depreciation is determined using straight-line depreciation at the rate of 10% per annum. Other information: Sales returns and allowances Salesmen's salaries Freight out Direct labor Indirect labor Office salaries Heat light & power factory Factory rent Miscellaneous factory overhead $ 3,500 2,500 4,000 100,000 45,000 7,000 2,000 8,000 10,000 Required: Prepare a statement of cost of goods manufactured for the month ended March 31, 2005. One unit of raw material is used for each unit of finished goods. There is no spoilage