Trendy Clothing, a manufacturer of cosmopolitan and custom made clothing, had the following inventory balances at the beginning and end of the year.

Inventory classification	1 January	31 December
Raw material	$55000	$75000
Work in process	110000	125000
Finished goods	160000	155000

During the year, the company purchased $240000 of raw material and spent $420000 for direct labour. Manufacturing costs were as follows.

Indirect material	$12000
Indirect labour	22000
Depreciation on plant and equipment	110000
Utilities	23000
Other	35000

Sales revenue was $1210000 for the year. Selling and administrative costs for the year amounted to $105000. The firm's tax rate is 35 per cent.

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare a schedule of cost of goods sold

3. Prepare an income statement