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 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		$19,800		$31,900
Work in process		22,000		15,400
Finished goods		33,000		55,000

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.

+ Chapter 1 Problems Question 2 of 2 Prepare a schedule of cost of goods manufactured for October 2022. (Assume that allraw materials used were direct materials.! SAGE HILL COMPANY Cost of Goods Manufactured Schedule