The following information is available for Lagakos Corporation for 20Y8:

InventoriesJanuary 1December 31Materials$352,000$437,000Work in process625,800592,800Finished goods605,200576,000December 31Advertising expense$294,200Depreciation expense-office equipment44,760Depreciation expense-factory equipment56,200Direct labor669,600Heat, light, and power-factory22,060Indirect labor76,750Materials purchased658,200Office salaries expense184,200Property taxes-factory17,000Property taxes-office building31,600Rent expense-factory32,100Sales3,015,000Sales salaries expense418,000Supplies-factory15,200Miscellaneous costs-factory9,500Required:

1.Prepare the statement of cost of goods manufactured.*2.Prepare the income statement.**Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers.