Required information [The following information applies to the questions displayed below.] The following data refer to San Fernando Fashions Company for the year 20x2: Sales revenue Work-in-process inventory, December 31 Work-in-process inventory, January 1 Selling and administrative expenses $ 950,000 30,000 40,000 150,000 Income tax expense 80,000 Purchases of raw material 170,000 Raw-material inventory, December 31 25,000 Raw-material inventory, January 1 30,000 Direct labor 180,000 Utilities: plant 40,000 Depreciation: plant and equipment 40,000 Finished-goods inventory, December 31 50,000 Finished-goods inventory, January 1 10,000 Indirect material 10,000 Indirect labor 12,000 Other manufacturing overhead 60,000 1. Prepare San Fernando Fashions' schedule of cost of goods manufactured for the year. SAN FERNANDO FASHIONS COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31, 20x2 Direct material: Raw-material inventory, January 1 30,000 Add: Purchases of raw material 170,000 Raw material available for use $ 55,000 Less: Raw-material inventory, December 31 25,000 Raw material used $ 5,000 Direct labor 180,000 Manufacturing overhead: Indirect material 10,000 Indirect labor 12,000 Depreciation: plant and equipment 40,000 Utilities: plant 40,000 Other manufacturing overhead 60,000 Total manufacturing overhead Total manufacturing costs 162,000 $ 347,000 2. Prepare San Fernando Fashions' schedule of cost of goods sold for the year. SAN FERNANDO FASHIONS COMPANY Schedule of Cost of Goods Sold For the Year Ended December 31, 20x2 Finished goods inventory, January 1 Add: Cost of goods manufactured Cost of goods available for sale Cost of goods sold Less: Finished-goods inventory, December 31 $ 10,000 3. Prepare San Fernando Fashions' income statement for the year. SAN FERNANDO FASHIONS COMPANY Income Statement For the Year Ended December 31, 20x2 Income before taxes $ 0 $ 0