Sage Hill Company is a manufacturer of smartphones. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. Sage Hill Company Income Statement For the Month Ended October 31, 2022 Sales revenue $858,000 Less: Operating expenses Raw materials purchases $290,400 Direct labor cost 209,000 Advertising expense 99,000 Selling and administrative salaries 82,500 Rent on factory facilities 66,000 Depreciation on sales equipment 49.500 Depreciation on factory equipment 34,100 Indirect labor cost 30,800 Utilities expense 13,200 Insurance expense 8,800 883,300 Net loss $(25,300) Prior to October 2022, the company had been profitable every month. The company's 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 $19,800 $31,900 Work in process Finished goods 22,000 15,400 33,000 $5,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities Prepare a schedule of cost of 2868 SAGE HILL COMPANY Cost of Goods Manufactured Schedule ober 1 tory October 1 then 20160 295480 Available for se 315840 32480 v 34720 31340 10080 5376 283360 212800