Problem 2. Statement of Costs of Goods Manufactured and Income statement. The following information are gathered from the accounting records of Genet Inc. for the current month: Inventory information Raw materials inventory Work-in-Process inventory Finished goods inventory Other information Revenue Purchase of raw materials Indirect materials costs Beginning balance $ Ending balance $ $46,800 $43,600 $33,400 $35,700 $42,500 $31,800 $ $800,000 $72,100 $5,600 Indirect labor costs $20,000 Office staff salaries $28,000 Office equipment depreciation $2,000 Factory machinery maintenance costs $5,000 Environmental compliance costs - factory $1,200 Direct labor-Wages of production line workers $32,000 Sales staff salaries $12,000 Advertising costs $8,000 Miscellaneous manufacturing overhead costs $11,000 B Required: a. Compute the direct materials costs placed into the production process. 5 5 7 8 9 Solution: 0 a. 1 b. Prepare the statement of the costs of goods manufactured for the current month. c. Compute the costs of goods sold. d. Prepare the income statement for Genet for the current month. (Show the working clearly). Direct materials placed in the production process Beginning raw materials Purchase of raw materials Raw materials available for use 2 3 4 35 36 37 B8 Ending raw materails Use of raw materials Indirect materials used Direct materials used F