Problem 10-21 Product versus selling, general, and administrative costs LO 10-2 The following transactions pertain to 2015, the first-year operations of Bailey company. All inventory was started and completed during 2015. Assume that all transactions are cash transactions. 1. Acquired $5,000 cash by issuing common stock. 2. Paid $710 for materials used to produce inventory. 3. Paid $1,860 to production workers. 4. Paid $1,648 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $114 rental fee for administrative office equipment. 7. Produced 380 units of inventory of which 270 units were sold at a price of $13 each. Required a-1. Prepare an income statement. (Do not round intermediate calculations.) Answer is complete and correct BAILEY COMPANY Income Statement for 2015 3,510 Sales revenue 2,997 Cost of goods sold 513 Gross margin 204 Administrative expense 309 Net income