Please show explanation. Thanks

Practice Problem 1 Hannibal Company produced 2.000 leather saddles during 2002. These saddles sell for ach. Hannibal had 250 saddles in finished goods inventory at the beginning of the year. At the end of the year, there were 350 saddles in finished goods inventory. Hannibal's accounting records provide the following information: Purchases of raw materials Raw materials inventory, 1/1/02 Raw materials inventory, 12/31/02 Direct labor Indirect labor Rent, factory building Depreciation, factory equipment Utilities, factory Salaries, sales supervisor Commissions, salespersons General Administration Work in process, 1/1/02 Work in process, 12/1/02 Finished goods inventory, 1/1/02 Finished goods inventory, 12/31/02 $160,000 23,400 33,400 100,000 20,000 21,000 30,000 5,978 55,000 38,000 61,000 6,250 7,498 40,000 57,050 REQUIRED: 1. Compute the cost of goods manufactured for the period. 2. Compute the cost of producing one unit of product in 2002. 3. Prepare an income statement using the framework from GP2