Sheffield Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

SHEFFIELD COMPANY Income Statement For the Month Ended October 31, 2020
Sales revenue					$795,000
Less:	Operating expenses
	Raw materials purchases		$264,900
	Direct labor cost		190,900
	Advertising expense		91,400
	Selling and administrative salaries		76,800
	Rent on factory facilities		62,300
	Depreciation on sales equipment		44,000
	Depreciation on factory equipment		32,200
	Indirect labor cost		28,400
	Utilities expense		11,700
	Insurance expense		8,300		810,900
Net loss					$(15,900)

Prior to October 2020, the company had been profitable every month. The companys president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were:

		October 1		October 31
Raw materials		$19,100		$35,000
Work in process		20,200		14,700
Finished goods		29,700		54,000

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

Prepare a schedule of cost of goods manufactured for October 2020

Prepare a correct income statement for October 2020.