Swift Company was organized on March 1 ofthe current year. After five months of startup losses, management had expected to earn a prot during August, the most recent month. Management was disappointed. however. when the income statement for August also showed a loss. August's income statement follows: SWIFT COMPANY Income Statement For the Month Ended August 31 Sales $519,999 Less: Operating expenses: Indirect labour cost $ 15,699 Utilities 18,669 Direct labour cost 58,999 Depreciation, factory equipment 21,999 Raw materials purchased 291,999 Depreciation, sales equipment 18,999 Insurance 4,299 Rent on facilities 51,999 Selling and administrative salaries 44,999 Advertising 99,799 5215599 Net loss ${112599} ' 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. After seeing the $11,500 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 com pany's assetsif 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'lljust limp along with Sam for the time being." Additional information about the company follows: Additional information about the company follows: a. Approximately 70% of the utilities cost and 75% ofthe insurance apply to factory operations. The remaining amounts apply to selling and administrative activities. b. Inventory balances atthe beginning and end ofAugust were as follows: August 1 August 31 Raw materials $18,888 $14,888 work in process 8,888 28,888 Finished goods 51,888 56,888 ' c. Only 75% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities. The president has asked you to check over the income statement and make a recommendation about whether the company should look for a buyer for its assets. Required: 1. As one step in gathering data for a recommendation to the presidentr prepare a schedule of cost of goods manufactured for August Direct materials: I Drnu 1 "r 3: ll! lama \\ \f1 As a second Step, prepare a newI income statement for August Less cost or goods sold: __