On Off Company Company $80,830 $110,740 Materials inventory, December 1 Materials inventory, December 31 (a) 125,140 (a) 205,310 Materials purchased Cost of direct materials used in production 216,620 (b) Direct labor 304,730 249,170 Factory overhead 94,570 124,030 (b) 716,490 771,110 983,370 155,190 266,880 130,940 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 709,840 136,600 124,030 143,070 (d) 1,191,430 1,107,400 Cost of goods sold 716,490 (d) (e) Gross profit Operating expenses 155,190 (f) Net Income 245,840 3. Prepare On Company's income statement for December. On Company Income Statement For the Month Ended December 31 $ Cost of goods sold