resigned in phones. Its controller Prepare a cost of goods Company is a manufacturer of smart following income manufactured schedule and a October 2017. An accountant has prepared the statement. the month of October 2017. statement for (LO 3), AN EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 XLS $780,000 Sales revenue Less: Operating expenses $264,000 Raw materials purchases 190,000 Direct labor cost 90,000 Advertising expense 75,000 Selling and administrative salaries 60,000 Rent on factory facilities 45,000 Depreciation on sales equipment 31,000 Depreciation on factory equipment 28,000 Indirect labor cost 12,000 Utilities expense 803,000 8,000 Insurance expense (23,000) Net loss Prior to October 2017, the company had been profitable every month. The companys president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $18,000 $29,000 Work in process 14,000 0,000 Finished goods 30,000 50,000