Income Statement, Cost of Goods Manufactured Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases of sports drinks in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in finished goods inventory. Spencer's accounting records provide the following information: Purchases of direct materials $2,350,000 Direct materials inventory, January 1 290,000 Direct materials inventory, December 31 112,000 Direct labor 1,100,000 Indirect labor 334,000 Depreciation, factory building 525,000 Depreciation, factory equipment 416,000 Property taxes on factory 65,000 Utilities, factory 150,000 Insurance on factory 200,000 Salary, sales supervisor 85,000 Commissions, salespersons 216,000 Advertising 500,000 General administration 390,000 Work-in-process inventory, January 1 450,000 Work-in-process inventory, December 31 750,000 Finished goods inventory, January 1 107,500 Finished goods inventory, December 31 488,750 Required: 1. Prepare a cost of goods manufactured statement. Spencer Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: Beginning inventory 290,000 Add: Purchases 2,350,000 Materials available 2,640,000 Less: Ending inventory 112,000 Direct materials used in production $ 2,528,000 Direct labor 1,100,000 Manufacturing overhead: Indirect labor 334,000 Depreciation, factory building 525,000 Depreciation, factory equipment 416,000 Property taxes on factory 65,000 Utilities, factory 150,000 Insurance on factory 200,000 1,690,000 $ 5,318,000 Total manufacturing costs added Add: Beginning work in process 450,000 Less: Ending work in process 750,000 Cost of goods manufactured $ 5,018,000 Feedback Check My Work See Cornerstone 2.2 2. Compute the cost of producing one case of sports drink last year. If required, round your answer to the nearest cent. $ 25.09 per case 3. Prepare an income statement on an absorption-costing basis. Show the percentage of sales that each line item represents. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Spencer Company Income Statement: Absorption Costing For the Year Ended December 31 Sales 6,876,000 Percent 100 % Cost of goods sold: Less: Operating expenses