Scenario: The administrative offices and manufacturing plant of Idaho Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year: $ 10,560 5,940 8,250 5,544 84 72 Idaho Tool & Die Accounting Record Administrative costs Building and machine depreciation (75% of this amount is for factory) Building utilities (90% of this amount is for factory) Direct labor Direct materials inventory, December 31 Direct materials inventory, January 1 Direct materials purchases Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Indirect factory labor Indirect materials and supplies Marketing costs Property taxes on building (80% of this amount is for factory) Sales revenue Work-in-process inventory, December 31 Work-in-process inventory, January 1 24,090 3,234 390 324 5,472 4,110 5,226 5,040 85,602 174 192 25 REQUIRED 26 Prepare an income statement with a supporting cost of goods sold statement. 27 Statement of Cost of Goods Sold For the Year Ended December 31 Beginning work in process, Jan. 1 Manufacturing costs: Direct materials: Beginning inventory, Jan. 1 Add: Purchases Direct materials available Less ending inventory, Dec. 31 Direct materials used Direct labor Manufacturing overhead: Indirect factory labor Factory supervision Indirect materials and supplies Building utilities (90% of total) Building & machine depreciation (75% of $5,940) Property taxes-factory (80% of total) Total manufacturing overhead Total manufacturing costs Total cost of work in process during the year Less work in process, Dec. 31 Costs of goods manufactured during the year Beginning finished goods, Jan. 1 Finished goods available for sale Less ending finished goods, Dec. 31 Cost of goods sold Idaho Tool & Die Income Statement For the Year Ended December 31 Sales revenue Less: Cost of goods sold (per statement) Gross profit Marketing and administrative costs: Depreciation (25% of total) Utilities (10% of total) Property taxes (20% of total) Administrative costs Marketing costs Total marketing and administrative costs Operating profit