Latourneau Company had the following account balances as of August 1, 2010:

Raw Material (direct and indirect) Inventory $25,300

Work in Process Inventory 10,000

Finished Goods Inventory 20,000

During August, the company incurred the following factory costs:

1. Purchased $174,000 of raw material on account.

2. Issued $190,000 of raw material to production, of which $134,000 was for direct materials.

3. Accrued $98,000 in factory payroll costs; $62,000 was for direct labor and the rest was

for supervisors’ salaries.

4. Accrued $8,000 of utility costs; of this amount, $1,600 was fixed.

5. Accrued $5,000 of property taxes on the factory.

6. Recorded the expiration of $2,600 of prepaid insurance on factory equipment.

7. Recorded $50,000 of straight-line depreciation on factory equipment.

8. Applied actual overhead to Work in Process Inventory.

9. Transferred goods costing $330,000 to Finished Goods Inventory.

10. Recorded total sales of $750,000; of these, $550,000 were on account.

11. Recorded cost of goods sold of $330,000.

12. Recorded selling and administrative costs of $350,000 (credit “Various accounts”).

Required:

d. Prepare an income statement, including a detailed schedule of cost of goods sold.