Questions: 1- ASI is a large manufacturer of auto tires. ASI I has provided the following information: Sales Revenue 55,000 Beginning Finished Goods Inventory 84,000 Cost of Goods Sold 109,500 Cost of Goods Manufactured 129,000 Calculate the amount of ending Finished Goods Inventory reported on ASI's balance sheet. 2- Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows: Swift Company Income Statement For the Month Ended August 31 Sales $450,000 Less operating expenses: Direct labor cost $ 70,000 Raw materials purchased 165,000 Manufacturing overhead 85,000 Selling and administrative expenses 142,000 462,000 Net operating loss S (12,000) After seeing the $12,000 loss for August, Swift's president stated, "I was sure we'd be profitable within six months, but our six months are up and this loss for August is even worse than July's. I think it's time to start looking for someone to buy out the company's assetsif we don't, within a 1 few months there won't be any assets to sell. By the way, I don't see any reason to look for a new controller. We'll just limp along with Sam for the time being." The company's controller resigned a month ago. Sam, a new assistant in the controller's office, prepared the income statement above. Sam has had little experience in manufacturing operations. Inventory balances at the beginning and end of August were: August 1 August 31 Raw materials $8,000 $13,000 Work in process S16,000 $21,000 Finished goods $40,000 $60,000 The president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: 1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured for August. 2. As a second step, prepare a new income statement for August