MODULE 283 -CALCULATIONS QUESTION 1 Abu Luqman Company is a manufacturer of toys. Its controller resigned in August 2014. An inexperienced assistant accountant has prepared the following income statement for the month of August 2014. ABU LUQMAN COMPANYINCOME STATEMENT FOR THE MONTH ENDED AUGUST 31, 2014 (30,000)705,000 Prior to August 2014, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, you have been asked to reviewthe 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 August were: II. Only 60% of the utilities expense and 70% of the insurance expense apply to factory operations;the remaining amounts should be charged to selling and administrative activities. INSTRUCTIONS i. Prepare a cost of goods manufactured schedule for August 2014 according to the formattaught in the class. ii. Prepare a correct income statement for August 2014