Materials inventory, December 1 Materials inventory, December 31 Materials purchased Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred in December Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 Cost of goods manufactured Finished goods inventory, December 1 Finished goods inventory, December 31 Sales Cost of goods sold Gross profit Operating expenses Net income (A) (B) (C) (D) (E) (F) On Company 65,800 30,800 282,800 (A) 317,800 (B) 387,800 148,400 854,000 973,000 119,000 172,200 (C) 73,000 $ 224,000 197,400 1,127,000 (D) (E) 117,600 (F) Off Company $ 195,300 91,140 577,220 256,060 1,519,000 1,727,320 208,320 1,532,020 269,080 1,944,320 1,545,040 164,920

On Off Materials inventory, December 1 Materials inventory, December 31 (A) Materials purchased Cost of direct materials used in production Direct labor Factory overhead Total manufacturing costs incurred in December (B) Total manufacturing costs Work in process inventory, December 1 Work in process inventory, December 31 (C) Cost of goods manufactured (C) Finished goods inventory, December 1 Finished goods inventory, December 31 (D) Sales Cost of goods sold (D) Gross profit (E) (E) Operating expenses (F) Net income \begin{tabular}{l} 1,127,000 \\ \hline 117,600 \\ \hline \end{tabular} (F) 164,920