The following data relates to the Katy Co.:

Direct Materials Inventory,Beginning$150

Direct Materials Inventory,Ending$110

Direct MaterialsPurchases$620

DirectLabor$350

FactoryOverhead$540

Work-in-Process Inventory,Beginning$260

Work-in-Process Inventory,Ending$280

Finished Goods Inventory,Beginning$820

Finished Goods Inventory,Ending$740

SalesRevenue$2,500

Selling and AdministrativeExpenses$300

Income TaxRate20%

Required:

a) Prepare a Statement of Cost of Goods Manufactured.

b) Prepare an Income Statement.