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 Luggages schedule of cost of goods manufactured for the year. 2. Prepare Laredo Luggages schedule of cost of goods sold for the year. 3. Prepare Laredo Luggages 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.