Part I. (16 Points).

Information for Luqmann, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.

Administrative salaries	$ 35,000
Depreciation of factory equipment	25,000
Depreciation of delivery vehicles	6,000
Direct labor	68,000
Factory supplies used	9,000
Finished goods inventory, January 1	57,000
Finished goods inventory, December 31	?
Factory insurance	15,500
Interest expense	12,000
Factory utilities	14,000
Factory maintenance	7,500
Raw materials inventory, January 1	5,000
Raw materials inventory, December 31	5,000
Raw material purchases	125,000
Rent on factory building	25,000
Repairs of factory equipment	11,500
Sales commissions	37,500
Work in Process inventory, January 1	3,500
Work in Process inventory, December 31	2,700

Part II. (24 Points).

Information for Pidris Metalworks as of December 31 follows.

Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (12 Points).

(b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses. (12 Points).

Administrative salaries expense	$ 135,000
Depreciation expenseFactory equipment	52,400
Depreciation expenseDelivery vehicles	36,200
Depreciation expenseOffice equipment	24,800
Advertising expense	22,350
Direct labor	268,000
Factory supplies use	12,000
Income taxes expense	91,500
Indirect labor	35,000
Indirect material	24,000
Factory insurance	15,500
Factory utilities	14,000
Factory maintenance	7,500
Inventories
Raw materials inventory, January 1	32,000
Raw materials inventory, December 31	28,000
Work in Process inventory, January 1	33,780
Work in Process inventory, December 31	37,460
Finished goods inventory, January 1	56,970
Finished goods inventory, December 31	62,000
Raw materials purchases	325,000
Rent expenseFactory	50,000
Rent expenseOffice space	24,000
Rent expenseSelling Space	24,000
Sales salaries expense	97,500
Sales	1,452,000
Sales discounts	29,000