Pioli Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 1.0 kilos 0.60 hours 0.60 hours Standard Standard Price or Rate Cost $ 5.00 per kilos $ 5.00 $24.00 per hour 14.40 $ 4.80 per hour 2.88 $22.28 The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $72,000 and budgeted activity of 15,000 hours. During the year, the company completed the following transactions: a. Purchased 14,300 kilos of raw material at a price of $4.40 per kilo. b. Used 19,400 kilos of the raw material to produce 19,500 units of work in process. C. Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 11,000 hours at an average cost of $24.80 per hour. d. Applied fixed overhead to the 19,500 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $143,770. Of this total, $59,390 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $84,380 related to depreciation of manufacturing equipment. e. Transferred 19,500 units from work in process to finished goods. f. Sold for cash 20,100 units to customers at a price of $58.80 per unit. g. Completed and transferred the standard cost associated with the 20,100 units sold from finished goods to cost of goods sold. h. Paid $44,210 of selling and administrative expenses. i. Closed all standard cost variances to cost of goods sold. Cash Raw Materials Work in Process Finished Goods PP&E (net) 1/1 $ 1,051,380 $ 46,770 $ 0 $ 55,050 $ 726,580 a. b. C. d. e. f. 9. h. i. 12/31 Materials Materials Price Quantity Variance Variance $ 0 $ Labor Labor Rate Efficiency Variance Variance 0 $ 0 $ FOH Budget FOH Volume Variance Variance 0 $ 0 $ 0 Retained Earnings 11 = Prepare an income statement for the year. Pioli Corporation Income Statement 0