Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement.

Listed below is information related to RRR Cos manufacturing activities for the month of October 2020.

Ending Balance Beginning Balance

Materials Inventory $197,000 $ 211,000

Work in Process Inventory 59,000 78,000

Finished Goods Inventory 91,000 82,000

During October 2020, RRR Company purchased $105,000 of raw materials and incurred direct labor costs of $77,100. The company applies overhead at a rate of 45% of direct labor cost. General, selling and administrative costs amounted to $36,100, and the company sold 39,400 units of its product at a price of $37.84 each.

Directions:

1. Prepare RRRs schedule of cost of finished goods manufactured for October 2020.
2. Determine RRRs cost of goods sold during October 2020.
3. Prepare RRRs income statement for the month ended October 31,2020 (ignoring interest expense and income taxes)