Ques 2-22 needs to be done...Below is the attach picture of the question

Chapter ? Cost Terms, Concepts, and Classifications 55 b. Inventory balances at the beginning and end of June were as follows: June 1 June 30 Raw materials . .. . .. $46,060 Work in process...... $19,060 94,090 Finished goods ... .. 77,090 22.000 66,000 c. Some 90s of the insurance and 80% of the utilities cost apply to factory operations; the remaining amounts apply to selling and administrative activities. The president has asked you to check over the above income statement and recommend whether the company should continue operations. Required: 1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured for June. 2. As a second step, prepare a new income statement for the month. 3. Based on your statements prepared in (1) and (2) above, would you recommend that the company continue operations?preparation PROBLEM 2-22 Schedule of Cost of Goods Manufactured; Income Statement LOL. LOZ. LOX, LO4) Veckay Company was organized on November 1 of the previous year. After seven months of start-up loves management had expected to earn a profit during June, the most recent month, Management was disap pointed, however, when the income statement for June also showed a loss. June's income statement follows VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales . . . .. . .. . . ..desets.am. $660,000 Less operating expenses: Selling and administrative salaries . $ 39.000 Rent on facilities . ..... 40.000 Purchases of raw materials . .... 209,000 Insurance. .... 10.000 Depreciation, sales equipment 11,000 Utilities costs, .... 55.000 Indirect labour. ..... 119.000 Direct labour ........ . ... 99,000 Depreciation, factory equipment.... 13,000 Maintenance, factory. ..... 8.000 Advertising ......... 88,000 691.000 Operating loss ....... $(31,000) After seeing the $31.000 loss for June, Veekay's president stated, "I was sure we'd be profitable within six months, but after eight months we're still spilling red ink. Maybe it's time for us to throw in the towel. To make matters worse, I just heard that Debbie won't be back from her surgery for at least six more weeks." Debbie is the company's controller: in her absence, the statement above was prepared by a new as- sistant who has had little experience in manufacturing operations. Additional information about the company follows: a. Only 85% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities