Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured state On Off Company Company Materials inventory, December 1 $68,590 $93,280 Materials inventory, December 31 (a) 105,410 Materials purchased 174,220 (a) Cost of direct materials used in production 183,820 (b) Direct labor 258,580 209,880 Factory overhead 80,250 104,470 Total manufacturing costs incurred in December (b) 603,520 Total manufacturing costs 654,340 828,320 Work in process inventory, December 1 131,690 224,800 Work in process inventory, December 31 111,120 (c) Cost of goods manufactured (c) 597,920 Finished goods inventory, December 1 115,920 104,470 Finished goods inventory, December 31 121,400 (d) Sales 1,011,020 932,800 Cost of goods sold (d) 603,520 Gross profit (e) (e) Operating expenses 131,690 (f) Net income Required: (f) 207,080