Name of the product		Cake
Items and ingredients		Quantity*	Cost/unit**
All-purpose flour		500 kg	$1/1kg
Butter		500 kg	$15/1kg
Sugar		500 kg	$1.23/1kg
Eggs		400 dozen	$1.25/dozen
Vanilla essence		15 onuz	$3 per ounz
Wages		250 hours	$10/1 hour
Electricity		2000 kWh	$0.17/kWh

.

Assume the following information:

• Direct labor cost is equal to 50% of direct material cost of your product.
• MOH is equal to 50% of direct material cost of your product.
• Work in process, beginning inventory = $100.
• Work in process, ending inventory = $100.
• Finished goods beginning inventory is 100 units.
• Finished goods ending inventory is 300 units.
• The number of units produced is 1,000 units and number of units sold is 800 units.
• Selling price is 50% greater than the cost of your product.
• Selling and administrative expenses are equal to 5% of total sales.
• Income tax rate = 8%.

.

Required:

1. Prepare the cost of goods manufactured schedule.
2. Prepare the cost of goods sold schedule.

c. Prepare the income statement