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. Kingbird Company Income Statement For the Month Ended October 31, 2022 Sales revenue $624,000 Less: Operating expenses Raw materials purchases $211,200 Direct labor cost 152,000 Advertising expense 72,000 Selling and administrative salaries 60,000 Rent on factory facilities 48,000 Depreciation on sales equipment 36,000 Depreciation on factory equipment 24,800 Indirect labor cost 22,400 Utilities expense 9,600 Insurance expense 6,400 642,400 Net loss $(18,400) 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. 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. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $14,400 $23,200 Work in process 16,000 11,200 Finished goods 24,000 40,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Work in Process, October 1 Direct Materials Raw Materials Inventory, October 1 Raw Materials Purchases Total Raw Materials Available for Use Less Raw Materials Inventory, October 31 Direct Materials Used Direct Labor Manufacturing Overhead Factory Facility Rent Depreciation on Factory Equipment Indirect Labor Factory Utilities Factory Insurance Total Manufacturing Overhead Total Manufacturing Costs Total Cost of Work in Process Less Work in Process, October 311 Cost of Goods Manufactured KINGBIRD COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2022