PROBLEM 2-5 COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: Raw materials Inventory Work-in-process inventory Finished goods Inventory DECEMBER 31 -0- $100,000 64,000 JANUARY 1 -o- 595,000 76,000 ..... Costs for the period were as follows: Direct materials....... $365,000 Direct labor 405,000 Factory overhead 445,500 Selling expenses were $26,000. General and administrative expenses were $82,000. Required: Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss