The Houston Company, a manufacturer, had the following beginning and ending inventory for the year ending inventory for the year ending December 31, 20XX.

raw materials ......................... $12,000 (beginning) ........... $20,000 (ending)

Work-in-process .................... $ 30,000 (beginning) ............ $38,000 (ending)

Finished goods ...................... $ 20,000 (beginning) ............ $13,000 (ending)

Indirect Materials and Supplies $ 20,000 (beginning) ............ $10,000 (ending)

During the year the following transactions occurred:

Sales ...................................................................................... $700,000

Raw materials purchased ....................................................... $320,000

Indirect materials and supplies purchased ..............................$30,000

Direct labor cost ...................................................................... $100,000

Indirect labor cost .................................................................... $50,000

Property taxes and depreciation on factory building ................ $20,000

Property taxes and depreciation on sales office and general office ............ $10,000

Utilities ( 60% to factory; 40%to sales office and general office) ................. $40,000

Sales Staff's salaries ................................................................... $30,000

Office salaries ............................................................................. $34,000

Sales staff's commission ............................................................ $7,000

REQUIRED:

(1) produce a statement of Cost of Goods Manufactured for the year.

(2) produce an income statement for the year

Please, explain the problem step by step as soon as possible. Especially how to calculate Manufacturing Overhead.

Thank you