Petraco Manufacturing Corporation had the following balances on selected accounts and transactions at January 1, 2020

• Materials $80,000
• Work in Process $70,000
• Finished Goods $30,000

Selected transactions for January 2020:

• Purchases materials $200,000
• Material used in January: Direct ($130,000) Indirect ($10,000)
• Direct Labor ($150,000) Indirect Labor ($24,000)
• Administrative salaries for January $100,000
• Utilities (Power, Gas, Telephone, Water, Internet) bills totaling $50,000 (80% manufacturing)
• Depreciation and amortization for the month was $100,000 (75% for manufacturing)
• Lease payments for the month $50,000 (70% for manufacturing facilities)
• At January 31, 2020 (Work in Process $35,000, Finished Goods $40,000)

Required:

1. Prepare a Cost of Goods Manufactured for January 2020 (Products costs)
2. Compute period costs incurred during January.
3. Prepare Cost of Goods Sold section of the Income Statement.