Microsoft's gaming console division reported the following data for the month of February 2023:

• Opening Work in Process Inventory: $150,000
• Direct Materials: $500,000
• Direct Labor: $400,000
• Manufacturing Overhead: $250,000
• Ending Work in Process Inventory: $100,000
• Sales Revenue: $3,000,000
• Marketing and Administrative Expenses: $600,000

Requirements:

1. Compute the Total Manufacturing Costs.
2. Calculate the Cost of Goods Manufactured.
3. Determine the Cost of Goods Sold.
4. Calculate the Gross Margin.
5. Prepare the Income Statement for February 2023.