PRACTICE PROBLEM 1 Consider the following information for Huntersville Incorporated for the fiscal year ended December 31. Depreciation expense-administrative office Depreciation expense-plant and equipment Direct labor-wages Materials Inventory, December 31 Materials Inventory, January 1 Direct materials purchases Finished goods inventory, December 31 Finished goods inventory, January 1 Heat, light, and power-plant Indirect labor Property taxes-plant Sales representatives' salaries Sales revenue Factory supervisor's salary Supplies-administrative office Supplies-plant Work-in-process inventory, December 31 Work-in-process inventory, January 1 $ 32,000 86,000 487,000 26,000 19,000 155,000 38,000 15,000 44,000 25,000 34,000 145,000 1,495,000 66,000 16,000 29,000 9,000 23,000 Required: Prepare a statement of cost of goods manufactured and an income statement for Huntersville for the year ended December 31. BEG INV PURCHASES TO WIP END INV MATERIALS INV BEG INV MATERIALS DIRECT LABOR OVERHEAD COST OF GOODS MFG END INV BEG INV COST OF GOODS MFG COST OF GOODS SOLD END INV PRACTICE SHEET 1 WORK IN PROC INV FINISHED GOODS INV COST OF GOODS SOLD COST OF GOODS SOLD DIRECT LABOR OVERHEAD OVERHEAD EXP SELLING & ADMIN