Statement of cost of goods manufactured Particulars Amount Amount Work-in-process inventory $63,900 Direct materials: Opening material inventory $44.250 Add:Material purchased $556.600 Cost of material available for sales $600,850 Less: Closing material inventory $31.700 Cost of direct material used $569,150 Direct labor $1,100,000 Factory overheads: Depreciation expense $80,000 Heat, Light and the power of factory $53.300 Indirect labor $115.000 Property tax $40.000 Rent expense $27.000 Supplies $9,500 Miscellaneous cost $11.400 Total Factory overheads $336.200 Total manufacturing cost $2,069,250 Less: Work-in-process inventory $80,000 Cost of goods manufactured $1,989,250A B 1 Income statement 2 Particulars Amount Amount 3 Sales $3,850,000 4 Cost of goods sold: 5 Finished goods inventory $101.200 6 Add Cost of goods manufactured $1.989.250 7 Cost of material available for sale $2.090.450 8 Less Finished goods inventory $99.800 9 Cost of goods sold: $1,990,650 10 Gross profit $1,859.350 11 12 Less: Operating expenses 13 Depreciation expense $30,000 14 Office salaries expense $318.000 15 Property taxes-office building $25.000 16 Advertising expense $400.000 17 Sales salaries expense $200.000 18 Total operating expenses $973,000 19 Net operating income $886,350