Prior to October $2027,$ the company had been profitable every month. The company's president is concerned about the accuracy of

the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After

examining other manufacturing cost data, you have acquired additional information as follows.

Inventory balances at the beginning and end of October were:

Only $75\%$ of the utilities expense and $60\%$ of the insurance expense apply to factory operations. The remaining amounts should be

charged to selling and administrative activities. Prepare a correct income statement for October $2027.$

KINGBIRD COMPANY

Income Statement

$

$Kingbird Company is a manufacturer of smartphones. Its controller resigned in October $2027.$ An inexperienced assistant accountant KINGBIRD COMPANY

Income Statement

$

$

has prepared the following income statement for the month of October $2027.$