I've been struggling to find what is part of the operating expense and what isnt, help would be greatly appreciated! :)

QUESTION: Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the years overhead and relating it to direct labour costs. The budget for 2016 was as follows:

Direct labour		$1,808,000
Manufacturing overhead		$867,840

As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $110,900, and 1819C, with total direct labour charges of $390,100. On these jobs, machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $229,000, and for 1819C they amounted to $421,000. Total charges to the Manufacturing Overhead Control account for the year were $903,000, and direct labour charges made to all jobs amounted to $1,576,200, representing 247,700 direct labour hours. There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory account showed a balance of $719,200. Sales for the year amounted to $6,210,300; cost of goods sold totalled $3,927,300; and sales, general, and administrative expenses were $1,848,400. The above amounts for inventories and the cost of goods sold have not been adjusted for any over- or under-application of manufacturing overhead to production. It is the companys practice to allocate any over- or under-applied overhead to inventories and the cost of goods sold.

Prepare an income statement for the company for the year. The income tax rate is 40%. (Round answers to the nearest whole dollar, e.g. 5,275.)

Prepare an income statement for the company for the year. The income tax rate is 40%. NICOLE LIMITED Income Statement for the year 2016 6210300 Sales Less N Adjusted cost of goods sold 4073724 2136576 Gross profit (Loss) Less 2. Operating expenses Net income before taxes Taxes Net income (Loss)