Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. TOMBERT COMPANY Income Statement For the Month Ended October 31, 2020 Sales (net) $ 783,900 Less: Operating expenses Raw materials purchases $264,650 Direct labour cost 190,350 Advertising expense 90,000 Selling and administrative salaries 74,700 Rent on factory facilities 60,900 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,500 Indirect labour cost 28,700 Utilities expense 12,700 Insurance expense 8,950 807,450 Net Loss $(23,550) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 $9,700 Raw materials Work in process Finished goods October 31 $29,950 14,550 45,950 16,350 30,200 2. Only 71% of the utilities expense and 58% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Prepare a schedule of the cost of goods manufactured for October 2020. TOMBERT COMPANY Cost of Goods Manufactured Schedule For the Month Ended October 31, 2020 $ $ Prepare a correct income statement for October 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TOMBERT COMPANY Income Statement