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 $63,270 $86,680 Materials inventory, December 31 (a) 97,950 Materials purchased 160,710 (a) Cost of direct materials used in production 169,560 (b) Direct labor 238,530 195,030 Factory overhead 74,030 97,080 Total manufacturing costs incurred in December (b) 560,820 Total manufacturing costs 603,600 603,600 Work in process inventory, December 1 121,480 208,900 Work in process inventory, December 31 102,500 (c) Cost of goods manufactured (c) 555,620 Finished goods inventory, December 1 106,930 97,080 Finished goods inventory, December 31 111,990 (d) Sales 932,600 866,800 Cost of goods sold (d) 560,820 Gross profit (e) (e) Operating expenses 121,480 (f) Net income (f) 192,430