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

Inventories	January 1	December 31
Materials	$351,000	$435,800
Work in process	625,200	590,400
Finished goods	607,400	571,000

	December 31
Advertising expense	$296,600
Depreciation expense-office equipment	43,560
Depreciation expense-factory equipment	55,880
Direct labor	669,000
Heat, light, and power-factory	22,060
Indirect labor	76,000
Materials purchased	658,200
Office salaries expense	183,300
Property taxes-factory	18,300
Property taxes-office building	31,200
Rent expense-factory	32,500
Sales	3,011,000
Sales salaries expense	417,000
Supplies-factory	16,000
Miscellaneous costs-factory	9,200

Required:

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.

Labels
For the Year Ended December 31, 20Y8
For the Month Ended December 31
At Year Ended December 31, 20Y8
Amount Descriptions
Advertising expense
Cost of direct materials used
Cost of finished goods available for sale
Cost of goods manufactured
Cost of goods sold
Cost of materials available for use
Depreciation expense-factory equipment
Depreciation expense-office equipment
Direct labor
Finished goods inventory, December 31, 20Y8
Finished goods inventory, January 1, 20Y8
Gross profit
Heat, light, and power-factory
Indirect labor
Materials inventory, December 31, 20Y8
Materials inventory, January 1, 20Y8
Miscellaneous costs-factory
Net income
Office salaries expense
Property taxes-factory
Property taxes-office building
Purchases
Rent expense-factory
Sales
Sales salaries expense
Supplies-factory
Total manufacturing costs incurred
Total operating expenses
Work in process inventory, December 31, 20Y8
Work in process inventory, January 1, 20Y8

1. Prepare the statement of cost of goods manufactured. 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.

Lagakos Corporation

Statement of Cost of Goods Manufactured

1
2	Direct materials:
3
4
5
6
7
8
9	Factory overhead:
10
11
12
13
14
15
16
17	Total factory overhead
18
19	Total manufacturing costs
20
21

Lagakos Corporation

Income Statement

1
2	Cost of goods sold:
3
4
5
6
7
8
9	Operating expenses:
10	Administrative expenses:
11
12
13
14	Selling expenses:
15
16
17
18