The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 1,099,000 39,000 51,200 61,300 198,200 239,000 23,400 58,000 5,250 51,000 98,000 132,000 45,600 38,700 65,400 xercise 14-14 Income statement preparation LO P2 repare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, Year 1 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured $ 1,099,000 61,300 Cost of goods available for sale Less: Finished goods inventory, ending Cost of goods sold 61,300 65,400 (4,100) Operating expenses Advertising expense General and administrative expenses 98,000 132,000 Total operating expenses Operating income 230,000 $ (230,000)