`PLEASE HELP ME SOLVE AND CORRECT THIS.

Swift Company was organized on March 1 of the current year. After five months of startup losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows SWIFT COMPANY Income Statement For the Month Ended August 31 505,000 Sales Less: Operating expenses Indirect labour cost Utilities Direct labour cost Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment Insurance Rent on facilities Selling and administrative salaries Advertising $ 15,300 17,000 59,000 26,000 198,000 18,000 4,000 50,000 43,000 85,700 516,000 Net loss $(11,000) The company's controller resigned a month ago. Sam, a new assistant in the controller's office, prepared the income statement above. Sam has had little experience in manufacturing operations. After seeing the $11,000 loss for August, Swift's president stated, "l was sure we'd be profitable within six months, but our six months are up and this loss for August is even worse than July's. I think it's time to start looking for someone to buy out the company's assets-if we don't, within a few months there won't be any assets to sell. By the way, I don't see any reason to look for a new controller. We'll just limp along with Sam for the time being Additional information about the company follows a. Some 70% of the utilities cost and 75% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities b. Inventory balances at the beginning and end of August were as follows Raw materials Work in process Finished goods August 1 August 31 $ 17,000 13,000 19,000 55,000 8,000 50,000 c. Only 75% of the rent on facilities applies to factory operations, the remainder applies to selling and administrative activities c. Only 75% of the rent on facilities applies to factory operations, the remainder applies to selling and administrative activities whether the company should look for a buyer for its assets Required: The president has asked you to check over the income statement and make a recommendation about 1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured in good form for August. SWIFT COMPANY Schedule of Cost of Goods Manufactured For the Month Ended August 31 Direct materials: Raw materials inventory, August 1 Add: Purchase of raw materials Raw materials available for use Deduct: Raw materials inventory, August 31 Raw materials used in production Direct labour 17,000 198,000 215,000 13,000 $202,000 59,000 Manufacturing overhead Indirect labour Utilities Insurance Depreciation, factory equipment Rent on facilities 15,300 11,900 3,000 26,000 37,500 Total overhead costs Total manufacturing costs Add: Work in process inventory, August 1 93,700 354,700 8,000 362,700 (19,000) $ 343,700 Deduct: Work in process inventory, August 31 Cost of goods manufactured 2. As a second step, prepare a new income statement for August SWIFT COMPANY Income Statement For the Month Ended August 31 Sales $505,000 Less cost of goods sold Finished goods inventory, August 1 Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, August 31 50,000 362,300 412,300 55,000 357,300 147,700 Gross margin Less operating expenses Advertising Selling and administrative salaries Insurance Rent on facilities Utilities Depreciation, sales equipment 85,700 43,000 1,000 12,500 5,100 18,000 165,300 17,600 Net income