Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: On Off Company Company Materials inventory, December 1 $79,850 $108,600 Materials inventory, December 31 (a) 122,720 Materials purchased 202,820 (a) Cost of direct materials used in production 214,000 (b) Direct labor 301,030 244,350 Factory overhead 93,420 121,630 Total manufacturing costs incurred in December (b) 702,640 Total manufacturing costs 761,760 761,760 Work in process inventory, December 1 153,310 261,730 Work in process inventory, December 31 129,360 (c) Cost of goods manufactured (c) 696,130 Finished goods inventory, December 1 134,950 121,630 Finished goods inventory, December 31 141,330 (d) Sales 1,176,990 1,086,000 Cost of goods sold (d) 702,640 Gross profit (e) (e)