Splish Brothers Company is a manufacturer of smartphones. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022 Splish Brothers Company Income Statement For the Month Ended October 31, 2022 $733,200 Sales revenue Less: Operating expenses $248,160 Raw materials purchases 178,600 Direct labor cost 84,600 Advertising expense 70,500 Selling and administrative salaries 56,400 Rent on factory facilities 42,300 Depreciation on sales equipment Depreciation on factory equipment 29.140 Indirect labor cost 26,320 Utilities expense 11,280 Insurance expense 7,520 754,820 $(21,620) Net loss Neto Prior to October 2022, the company had been profitable every month. The company's 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 $16.920 $27,260 Work in process 18.800 13,160 Finished goods 28,200 47.000 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. 0.92/4 Question 5 of 5 October 31.2022 Direct Materials Raw Materials inventorv. October 1 $ Raw Materials Purchases Total Raw Materials Available for Use Less 2 Raw Materials Inventory, October 31 $ Direct Labor Manufacturing Overhead Factory Facility Rent 29140 Depreciation on Factory Equipment Indirect Labor