Kingbird Company is a manufacturer of smartphones. Its controller resigned in October $2022.$ An inexperienced assistant accountant has prepared the following income statement for the month of October $2022.$

Prior to October $2022,$ the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.