QUESTION $2$

The following information has been taken from the accounting records of Line Klear Company for last year

:Selling expenses $140,000$

Raw materials inventory, $1$ January $200690,000$

Raw materials inventory, $31$ December $200660,000$

Utilities, factory $36,000$

Direct labor cost $150,000$

Depreciation, factory $162,000$

Purchases of raw materials $750,000$

Sales $2,500,000$

Insurance, factory $40,000$

Indirect materials $15,000$

Administrative expenses $270,000$

Indirect labor $300,000$

Maintenance, factory $87,000$

Work in process inventory, $1$ January $2006180,000$

Work in process inventory, $31$ December $2006100,000$

Finished goods inventory, $1$ January $2006260,000$

Finished goods inventory, $31$ December $2006210,000.$

Management wants these data organized in a better format so that financial statements can be prepared for the year.

REQUIRED:

$($a$)$ Prepare a schedule of cost of goods manufactured for the year ended $31$ December $2006.($b$)$ Calculate the cost of goods sold.

$($c$)$ Prepare an income statement for Line Klear Company.