q1:

Please prepare the cost of goods sold statement and the income statement based on the financial records of Place Pty Ltd for December 2019 provided below. Additionally, please express the income statement components as a percentage of the revenue and provide your comments on the results.

Sales: $1,100,000

Selling and administrative expenses: $150,000

Direct materials purchases: $300,000

Direct labor: $260,000

Factory overhead: $400,000

Direct materials on hand, December 1: $45,000

Work in process inventory, December 1: $70,000

Finished goods inventory, December 1: $65,000

Direct materials on hand, December 31: $40,000

Work in process inventory, December 31: $60,000

Finished goods inventory, December 31: $60,000