The following data refer to Nani’s Fashions for the current year:

Sales Revenues	$475 000
Work in process inventory, 31 December	15 000
Work in process inventory, 1 January	20 000
Selling and administrative expenses	75 000
Income tax expense	45 000
Purchase of raw materials	90 000
Raw materials inventory, 31 December	12 500
Raw material inventory. 1 January	20 000
Direct labour	100 000
Electricity: plant	20 000
Depreciation plant and equipment	30 000
Finished goods inventory, 31 December	25 000
Finished goods inventory, 1 January	10 000
Indirect material	5 000
Indirect labour	7 500
Other manufacturing overhead	40 000

Required:

1. 1. Prepare the schedule of cost of goods manufactured for Nani’s fashion.
2. 
   
3. 2. Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information provided by the schedule of cost of goods sold.
4. 
   
5. 3. Prepare an income statement for the current year.