Iidentify Cost of Goods Manufactured for the period and create an income statement for August 2014.

Statement of Cost of Goods Manufactured and Income StatementInformation from the records of the Valley Manufacturing Company for August 2014 follows:

Sales .............................................................................................$210,000

Selling and administrative expenses ........................................ 85,000

Purchases of raw materials.........................................................30,000

Direct labor ...................................................................................20,000

Manufacturing overhead.............................................................37,000

Inventories

August 1 August 31

Raw materials .............................................. $ 8,000 $ 5,000

Work-in-process ............................................ 14,000 11,000

Finished goods ............................................. 15,000 19,000