PROBLEM 1 Cortez Company is in the business of manufacturing sports apparel. Inventory data for the recent first year 2021 are as follows: Beginning Ending Raw materials 150,000 125,000 Work in process 75,000 60,000 Finished goods 25,000 22,000 After compiling all the account information at the end of 2021, the following were made available: Purchases 550,000.00 Depreciation, administrative office 15,000.00 Depreciation, factory building 24,000.00 Depreciation, factory equipment 22,000.00 Depreciation, office equipment 12,000.00 Depreciation, office furniture and fixtures 16,000.00 General and administrative salaries 1,200,000.00 Indirect labor 30,000.00 Indirect materials 25,000.00 Maintenance cost factory 40,000.00 Office supplies expense 10,000.00 Salary of factory supervisor 60,000.00 Supplies in the factory 5,000.00 Utilities expense, factory 80,000.00 Utilities expense, head office 60,000.00 The human resources department revealed a total of 200,000 hours were worked on by direct laborers at a standard rate of $10 per hour. The general property insurance annual expense of $50,000 covers administrative offices (20%) and the factory premises (80%). The real property tax of $75,000 are allocated in the same manner for administrative offices (20%) and factory premises (80%). Sales for 2021 totaled $4,600,000. The company gives a 5% sales commissions to its sales persons as a way of incentive. Required: 1. Raw materials used in production 2. Manufacturing overhead 3. Manufacturing costs 4. Cost of Goods Placed in Process 5. Cost of Goods Manufactured 6. Cost of Goods Available for Sale 7. Cost of Goods Sold 8. Operating Expenses 9. Net Operating Income