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					$967,200
Less:	Operating expenses
	Raw materials purchases		$327,360
	Direct labor cost		235,600
	Advertising expense		111,600
	Selling and administrative salaries		93,000
	Rent on factory facilities		74,400
	Depreciation on sales equipment		55,800
	Depreciation on factory equipment		38,440
	Indirect labor cost		34,720
	Utilities expense		14,880
	Insurance expense		9,920		995,720
Net loss					$(28,520)

Prior to October 2022, the company had been profitable every month. The companys 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.

Inventory balances at the beginning and end of October were:

		October 1		October 31
Raw materials		$22,320		$35,960
Work in process		24,800		17,360
Finished goods		37,200		62,000

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.

(b) Prepare a correct income statement for October 2022. KINGBIRD COMPANY Income Statement For the Month Ended October 31, 2022 Sales Revenue $ 967,200 Cost of Goods Sold Finished Goods Inventory, October 1 $ 37,200 Cost of Goods Manufactured 721,432 Cost of Goods Available for Sale Less : Finished Goods Inventory, October 31 62,000 Cost of Goods Sold Gross Profit Operating Expenses Utilities Expense > Insurance Expense Total Operating Expenses > Net Income /(Loss) $