Teal Mountain Company Income Statement For the Month Ended October 31, 2022 Sales revenue $764,400 Less: Operating expenses Raw materials purchases $258,720 Direct labor cost 186,200 Advertising expense 88,200 Selling and administrative salaries 73,500 Rent on factory facilities 58,800 Depreciation on sales equipment 44,100 Depreciation on factory equipment 30,380 Indirect labor cost 27,440 Utilities expense 11,760 Insurance expense 7,840 786,940 Net loss $(22,540) Prior to October 2022, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $17,640 $28,420 Work in process 19,600 13,720 Finished goods 29,400 49,000 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Work in Process, October 1 Direct Materials Raw Materials Inventory, October 1 17,640 Raw Materials Purchases 258.720 Total Raw Materials Available for Use 276360 Less Raw Materials Inventory, October 31 28420 i Direct Materials Used Direct Labor Manufacturing Overhead Factory Facility Rent 58,800 Depreciation on Factory Equipment 30,380 Indirect Labor 27,440 Factory Utilities Factory Insurance Total Manufacturing Overhead Total Manufacturing Costs Total Cost of Work in Process Less Work in Process, October 31 Cost of Goods Manufactured 8820 4704 247940 186200 130,144) Prepare a correct income statement for October 2022. TEAL MOUNTAIN COMPANY Income Statement > > 1A > > > < > < > > < > < > $