Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. On Company Materials inventory, December 1 $ 65,800 Off Company $ 195,300 Materials inventory, December 31 (A) 91,140 Materials purchased 282,800 (A) Cost of direct materials used in production 317,800 (B) Direct labor 387,800 577,220 Factory overhead 148,400 256,060 Total manufacturing costs incurred in December (B) 1,519,000 Total manufacturing costs 973,000 1,727,320 Work in process inventory, December 1 119,000 208,320 Work in process inventory, December 31 172,200 (C) Cost of goods manufactured (C) 1,532,020 Finished goods inventory, December 1 224,000 269,080 Finished goods inventory, December 31 197,400 (D) Sales 1,127,000 1,944,320 Cost of goods sold (D) 1,545,040 Gross profit (E) (E) Operating expenses 117,600 (F) Net income (F) 164,920