Swanson Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. Augusts' income statement follows: Swanson Company Income Statement For the Month Ended August 31 $831,000 Sales.. Less operating expenses: Indirect labor cost.............. Utilities. Direct labor cost ........ Depreciation, factory equipment Raw materials purchased. Depreciation, sales equipment Insurance.. Rent on facilities .... Selling and administrative salaries Advertising ........ Net operating loss.... $ 74,000 26,000 112,000 30,000 370,000 40,000 6,000 45,000 52,000 98.000 853,000 $(22.000) The company's controller resigned a month ago. Sarah, a new inexperienced assistant in the controller's office, prepared the income statement above. Additional information about the company follows: a. 75% of the utilities cost and 50% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities. b. Inventory balances at the beginning and end of August were: Raw materials..... Work in process.. Finished goods ... August 1 $15,000 $27,000 $35,000 August 31 $20,000 $42,000 $60,000 c. 85% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities. Required: 1. Prepare a schedule of cost of goods manufactured for August. 2. Prepare a new, corrected, income statement for August