The CEO of Work-Longer-Hours Inc, Elon Zuckerburg started manufacturing innovative standing "24-7" work desks.

The company manufactured 4,000 work desks during the entire year.Elon says they have 500 desks stations in the finished goods inventory at the beginning of the year and that the retail selling price for each desk is $400. At the end of the year, there were 700 work desks in the finished goods inventory.Elon provides the following information and asks you to create a Cost of Goods Manufactured (COGM) statement and also an income statement and to give them some advice for the business costs based on these numbers:

Utilities. Work-Longer Hours Company Factory$ 11,900

Sales Supervisors Salary 90,000

Salespersons, Commission180,000

General administration300,000

Purchases in raw materials320,000

Beginning materials inventory46,800

Ending materials inventory66,800

Beginning work in process inventory13,040

Ending work in process inventory14,940

Beginning finished good inventory 80,000

Ending finished good inventory114,100

Direct Labour200,000

Indirect Labour40,000

Rent, Factory Building42,000

Depreciation, Factory equipment60,000

SOLVE and ANALYZE:

1a) Elon asks you to prepare a statement of cost of goods manufactured (COGM) and 1b) an income statement. /15 marks

2)After reviewing the statement of COGM and income statement do an analysis for Elon to determine what are the biggest costs and give solutions on how to reduce costs, boost sales and improve profits next year using management accounting theory/10 marks