Swift 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. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows: $596,000 Swift Company Income Statement For the Month Ended August 31 Sales Less operating expenses: Direct labor cost $88,000 Raw materials purchased 190,300 Manufacturing overhead 210,925 Selling and administrative expenses 142,775 Net operating loss 632,000 $(36,000) After seeing the $36,000 loss for August, Swift's president stated, "I was sure we'd be profitable within six months, but our six months are up and this loss for August is even worse than July's. I think it's time to start looking for someone to buy out the company's assets-if we don't, within a few months there won't be any assets to sell. By the way, I don't see any reason to look for a new controller. We'll just limp along with Sam for the time being." The company's controller resigned a month ago. Sam, a new assistant in the controller's office, prepared the income statement above. Sam has had little experience in manufacturing operations, Inventory balances at the beginning and end of the month were as follows: Raw materials Work in process Finished goods August 1 $17,000 $72,000 $19,000 August 31 $43,000 $84,000 $61,000 The president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Requirement 1: As one step in gathering data for a recommendation to the president, prepare a schedule of cost of good manufactured for August. (Omit the "$" sign in your response.) Swift Company Schedule of Cost of Goods Manufactured For the Month Ended August 31 Direct materials: (Click to select) (Click to select) : (Click to select) (Click to select) (Click to select) : (Click to select) Raw materials used in production (Click to select) (Click to select) Total manufacturing costs (Click to select) : (Click to select) (Click to select) (Click to select) Cost of goods manufactured Requirement 2: As a second step, prepare a new income statement for August. (Omit the "$" sign in your response.) ST Swift Co Swift Company Income Statement For the Month Ended August 31 Si : (Click to select) (Click to select) Cost of goods sold: (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) : (Click to select) Requirement 3: Based on your statements prepared in requirement (1) and (2) above, would you recommend that the company continue operations? (Click to select)