SAN YSIDRO COMPANY Income Statement For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross margin $4,550,000 2,748,760 $ 1,801,240 Administrative salaries Attorney fees Building depreciatiorn Distribution costs Marketing costs 192,000 22,960 4,480 103,600 Total operating costs Operating profit 323,040 Problem 2-66 Reconstruct Financial Statements (LO 2-1, 2, 6) anufactures hiking equipment. The company's administrative and manufacturing operations share the company'so ministrative activities. Indirect labor is 8 p building. Eighty percent of the building is used for manufacturing and the remainder is used for ad of direct labor The cost accountant at San Ysidro has compiled the following information for the year ended December 31: Administrative salaries Attorney fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31 Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor $ 192,000 22,960 181,440 2,776,760 248,000 1,008,000 1,069,880 4,480 224,000 252,000 53,200 33,880 103,600 82,160 104,160 4,550,000 38,800 Work-in-process inventory, January 1 Work-in-process inventory, December 31 72,520 68,880