The following list of items were taken from the adjusted trial balance and other records of Blue Sky Manufacturing Company in Mazabuka before the year end of 2018 closing entries were recorded:

Advertising Expense 6,480

Depreciation expense, office equipment 2,700

Depreciation expense, selling equipment 3,240

Depreciation of factory equipment 11,340

Direct labor 209,520

Factory supervisions 38,880

Factory supplies used 5,940

Factory utilities 10,800

Income taxes expense 43,740

Indirect labor 18,900

Inventories:

Raw Materials, January 1 52,920

Raw Materials, December 31 54,540

Goods in process, January 1 4,280

Goods in process, December 31 4,500

Finished Goods, January 56,700

Finished Goods, December 31 45,360

Miscellaneous production costs 2,700

Office Salaries Expense 22,680

Raw Materials purchases 278,100

Rent expense, office space 7,560

Rent expense, selling space 8,640

Rent on factory building 25,920

Repairs, Factory equipment 9,720

Sales 972,540

Sales discounts 18,360

Sales salaries expense 94,500

Transportation-in on raw materials 8,100

Required:

1. Prepare a manufacturing statement
2. Prepare a classified income statement for the company clearly showing the selling expenses and administrative and general expenses.