The following data refer to Laredo Luggage Company for the year 20x2:

Sales revenue

$

475,000

Work-in-process inventory, December 31

15,000

Work-in-process inventory, January 1

20,000

Selling and administrative expenses

75,000

Income tax expense

45,000

Purchases of raw material

90,000

Raw-material inventory, December 31

12,500

Raw-material inventory, January 1

20,000

Direct labor

100,000

Utilities: plant

20,000

Depreciation: plant and equipment

30,000

Finished-goods inventory, December 31

25,000

Finished-goods inventory, January 1

10,000

Indirect material used

5,000

Indirect labor

7,500

Other manufacturing overhead

40,000

Required:

1. Prepare Laredo Luggage's schedule of cost of goods manufactured for the year.

2. Prepare Laredo Luggage's schedule of cost of goods sold for the year.

3. Prepare Laredo Luggage's income statement for the year.

4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements.

Show how both cost schedules and the income statement will change if raw-material purchases

amounted to $92,000 and indirect labor was $9,000.