P19.5A Prepare a cost of goods manufactured schedule and a correct income statement Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY income Statement For the Month Ended October 31, 2020 $780,000 Sales Revenue Less: Operating Expenses Raw materials purchases Direct labor costs Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense Net loss $264,000 190,000 90,000 75,000 60,000 45,000 31,000 28,000 12,000 8.000 $803,000 ($23,000) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional Information as follows. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $18,000 $29,000 Work in process 20,000 14,000 Finished goods 30,000 50,000 Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Instructions (a) Prepare a schedule of cost of goods manufactured for October 2020. (b) Prepare a correct income statement for October 2020