:Q1: Hurwitz Corporation had the following activities during 2007

Required: (a) Prepare a schedule of cost of goods manufactured for 2007. (b) Prepare a schedule of cost of goods sold for 2007. (c) Prepare an income statement for 2007.

Raw Materials: Inventory January 1, 2007 Purchases of raw materials Inventory December 31,2007 $200,000 318,000 210,000 Direct manufacturing labor Utilities: plant Depreciation: plant and equipment Indirect materials Indirect labor Other manufacturing overhead Sales revenues Selling and administrative expenses Income tax rate Work in process inventory, December 31,2007 Work in process inventory, January 1,2007 Finished goods inventory, January 1, 2007 Finished goods inventory, December 31, 2007 180,000 50,000 40,000 30,000 150,000 60,000 1,250,000 150,000 30% 120,000 64,000 80,000 150,000