Koufax Materials Corporation produces plastic products for home appliances and electronics. The financial department has produced the following information for the year ended December 31.

Administrative salaries	$	2,645,000
Depreciation on the administrative building		1,162,000
Depreciation on the manufacturing plant		1,770,000
Direct labor		4,712,500
Direct materials inventory, January 1		1,089,200
Direct materials inventory, December 31		1,255,000
Direct materials purchased during the year		8,976,000
Distribution costs		677,000
Finished goods inventory, January 1		1,662,000
Finished goods inventory, December 31		1,389,500
Indirect labor		562,000
Insurance (on manufacturing plant)		73,200
Legal fees		516,300
Maintenance (on the manufacturing plant)		235,400
Manufacturing plant utiities		804,100
Marketing costs		769,250
Other manufacturing plant costs		650,880
Sales revenue		22,674,920
Taxes (on manufacturing plant and property)		235,600
Work-in-process inventory, January 1		423,250
Work-in-process inventory, December 31		416,700

Required:

a. Prepare a cost of goods manufactured and sold statement.

b. Prepare an income statement.

repare a cost of goods manufactured and sold statement.

KOUFAX MATERIALS CORP.
Cost of Goods Manufactured and Sold Statement
For the Year Ending December 31
Manufacturing costs:
Direct materials:
Manufacturing overhead:
Total overhead
Total manufacturing costs
Total cost of work-in-process during the year
Costs of goods manufactured this year
Cost of goods available for sale
Cost of goods sold (to income statement)

Prepare an income statement. (Loss amounts should be indicated with a minus sign.)

KOUFAX MATERIALS CORP.
Income Statement
For the Year Ending December 31
Total operating costs

Required:

a. Prepare a cost of goods manufactured and sold statement.

b. Prepare an income statement.