Question 5 Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2020 Sales (net) $ 782,700 Less: Operating expenses Raw materials purchases $264,550 Direct labour cost 190,800 Advertising expense 89,900 Selling and administrative salaries 74,950 Rent on factory facilities 60,600 Depreciation on sales equipment 44,850 Depreciation on factory equipment 31,700 Indirect labour cost 28,450 Utilities expense 12,800 Insurance expense 8,750 807,350 Net Loss $(24,650) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: Raw materials Work in process Finished goods October 1 $15,800 16,350 30,500 October 31 $29,650 14,800 45,950 2. Only 73% of the utilities expense and 54% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Prepare a schedule of the cost of goods manufactured for October 2020. TOMBERT COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 $ $ $ > > MI Prepare a correct income statement for October 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TOMBERT COMPANY Income Statement $ )