Suppose that you have been given a summer job as an intern at Electronic Waves, a company that manufactures portable two-way radio transceivers for radio enthusiasts. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs

ndirect materials

	$300
Rent on factory building	500
Maintenance of equipment	50
Direct material used	1,200
Utilities on factory	250
Direct labour	1,500
Selling expense	500
Administrative expense	300
Work-in-process inventory, beginning	600
Work-in-process inventory, ending	800
Finished goods inventory, beginning,	500
Finished goods inventory, ending	250