San Ysidro Company manufactures hiking equipment. The company's administrative and manufacturing operations share the company's one 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	$	192,000
Attorney fees to settle zoning dispute		22,960
Building depreciation (manufacturing portion only)		181,440
Cost of goods manufactured		2,776,760
Direct materials inventory, December 31		248,000
Direct materials purchased during the year		1,008,000
Direct materials used		1,069,880
Distribution costs		4,480
Finished goods inventory, January 1		224,000
Finished goods inventory, December 31		252,000
Insurance (on plant machinery)		53,200
Maintenance (on plant machinery)		33,880
Marketing costs		103,600
Other plant costs		82,160
Plant utilities		104,160
Sales revenue		4,550,000
Taxes on manufacturing property		38,800
Total (direct and indirect) labor		1,209,600
Work-in-process inventory, January 1		72,520
Work-in-process inventory, December 31		68,880

Required:

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