Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

	On Company		Off Company
Materials inventory, December 1	$86,270		$113,010
Materials inventory, December 31	(a)		127,700
Materials purchased	219,130		(a)
Cost of direct materials used in production	231,200		(b)
Direct labor	325,240		254,270
Factory overhead	100,940		126,570
Total manufacturing costs incurred in December	(b)		731,170
Total manufacturing costs	823,020		1,003,520
Work in process inventory, December 1	165,640		272,350
Work in process inventory, December 31	139,760		(c)
Cost of goods manufactured	(c)		724,390
Finished goods inventory, December 1	145,800		126,570
Finished goods inventory, December 31	152,700		(d)
Sales	1,271,620		1,130,100
Cost of goods sold	(d)		731,170
Gross profit	(e)		(e)
Operating expenses	165,640		(f)
Net income	(f)		250,880

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

Use similar relationships from On to find the missing amounts for the Off items (a) through (f).

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in process inventory, December 1			$
Direct materials:
Materials inventory, December 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, December 31
Cost of direct materials used in production		$
Direct labor
Factory overhead
Total manufacturing costs incurred during December
Total manufacturing costs			$
Less work in process inventory, December 31
Cost of goods manufactured			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
Sales		$
Cost of goods sold:
Finished goods inventory, December 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, December 31
Cost of goods sold
Gross profit		$
Operating expenses
Net income