San Ysidro Company manufactures hiking equipment. The companys administrative and manufacturing operations share the companys only building. Eighty percent of the building is used for manufacturing and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor.

The cost accountant at San Ysidro has compiled the following information for the year ended December 31:

Administrative salaries	$	178,200
Attorney fees to settle zoning dispute		29,700
Building depreciation (manufacturing portion only)		225,600
Cost of goods manufactured		3,434,800
Direct materials inventory, December 31		297,800
Direct materials purchased during the year		1,250,000
Direct materials used		1,333,000
Distribution costs		5,000
Finished goods inventory, January 1		281,000
Finished goods inventory, December 31		319,000
Insurance (on plant machinery)		65,900
Maintenance (on plant machinery)		44,600
Marketing costs		127,700
Other plant costs		108,800
Plant utilities		128,300
Sales revenue		5,603,400
Taxes on manufacturing property		44,900
Total (direct and indirect) labor		1,479,600
Work-in-process inventory, January 1		90,000
Work-in-process inventory, December 31		85,900

Required:

Prepare a cost of goods manufactured and sold statement and an income statement.