Problem 19-05A a-b Sunland Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. $793,900 SUNLAND COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less: Operating expenses Raw materials purchases $264,800 Direct labor cost 188,400 Advertising expense 91,800 Selling and administrative salaries 76,400 Rent on factory facilities 62,000 Depreciation on sales equipment 44,000 Depreciation on factory equipment 32,800 Indirect labor cost 29,000 Utilities expense 11,800 Insurance expense 8,500 Net loss 809,500 $(15,600) Prior to October 2020, 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. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials Work in process Finished goods $20,300 20,100 29,700 $35,900 15,000 53,500 2. 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 schedule of cost of goods manufactured for October 2020. SUNLAND COMPANY Cost of Goods Manufactured Schedule Prepare a correct income statement for October 2020. SUNLAND COMPANY Income Statement $ Click if you would like to Show Work for this question: Open Show Work