PROBLEMS Problem 6-1 (IAA) Masay Company provided the following information for 2019: Sales 7,500,000 Inventories - January 1: Raw materials 200,000 Goods in process 240,000 Finished goods 360,000 Inventories - December 31: Raw materials 280,000 Goods in process 170,000 Finished goods 300,000 Purchases 3,000,000 Direct labor 950,000 Indirect labor 250,000 Superintendence 210,000 Light, heat and power 320,000 Rent - factory building 120,000 Repair and maintenance - machinery 50,000 Factory supplies used 110,000 Sales salaries 400,000 Advertising 160,000 Depreciation - store equipment 70,000 Office salaries 150,000 Depreciation office equipment 40,000 Depreciation - machinery 60,000 Sales returns and allowances 50,000 Interest income 10,000 Gain on sale of equipment 100,000 Delivery expenses 200,000 Accounting and legal fees 150,000 Office expenses 250,000 Earthquake loss 300,000 Gain from expropriation of asset 100,000 Income tax expense 320,000 Required: a. Prepare a statement of cost of goods manufactured b. Prepare an income statement using the "cost of goods sold" method with supporting notes c. Prepare an income statement using the "nature of expense" method with supporting notes