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The Splendid Staircases Shop Ltd . manufactures one of a kind, special order spiral staircases in its Olds, AB factory. The following is a summary

The Splendid Staircases Shop Ltd. manufactures one of a kind, special order spiral staircases in its Olds,
AB factory. The following is a summary of transactions in 2017.
1. The manufacturing overhead is applied using a budgeted overhead application rate based on
direct labour hours. The budget for 2017 called for $240,000 of manufacturing overhead costs and 9,600 direct labour hours.
2. The opening work in process at January 1,2017 was $12,000.
3. The only job unfinished on December 31,2017 was JOB NO.109, on which total labour charges were
$2,880(120 direct labour hours at $24 per hour) and total direct material charges were $9,000.
4. The balance of raw materials inventory on January 1,2017 was $15,000. Raw materials placed into production during 2017 totalled $140,000 of which $23,000 was indirect raw materials. The balance of ending raw material inventory was $22,000 on December 31,2017
5. The finished good inventory balance at January 1,2017 was $15,000. The unadjusted ending finished goods inventory on December 31,2017 was $25,000.
6. The total factory labour costs (direct labour and indirect labour) for the year were $260,000. Direct labour hours in 2017 totaled 8,700.
7. Other costs incurred during the year were:
advertising $30,000
office $35,000
utilities - factory $90,000
sales commissions $45,000
insurance - factory $44,800
8. The company sold 300 staircases at an average selling price of $3,000
9. Any under-applied or over-applied overhead is closed according to IAS2.
REQUIRED: Prepare a schedule of cost of goods manufactured and an income statement for the year ending December 31,2017 if the income tax rate is 16%.

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