Marin Company is a manufacturer of smartphones. Its controller resigned in October $2022.$ An inexperienced assistant accountant has prepared the following income statement for the month of October $2022.$

Marin Company

Income Statement

For the Month Ended October $31,2022$

Sales revenue

$$826,800$

Less:

Operating expenses

Raw materials purchases

$$279,840$

Direct labor cost

$201,400$

Advertising expense

$95,400$

Selling and administrative salaries

$79,500$

Rent on factory facilities

$63,600$

Depreciation on sales equipment

$47,700$

Depreciation on factory equipment

$32,860$

Indirect labor cost

$29,680$

Utilities expense

$12,720$

Insurance expense

$8,480851,180$

Net loss

$$(24,380)$

Prior to October $2022,$ the company had been profitable every month. The company$$s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

$1.$ Inventory balances at the beginning and end of October were:

October $1$

October $31$

Raw materials

$$19,080$ $$30,740$

Work in process

$21,20014,840$

Finished goods

$31,80053,000$

$2.$ Only $75\%$ of the utilities expense and $60\%$ of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

$($a$)$

Prepare a schedule of cost of goods manufactured for October $2022.($Assume that all raw materials used were direct materials.$)$

MARIN COMPANY

Cost of Goods Manufactured Schedule

choose the accounting period

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