Vivus is a specialty pharmaceutical company incorporated in California in 1991 and reincorporated in Delaware in 1996. In April 2018, the company hired John Amos as its new Chief Executive Officer. Under Amos leadership, the company ventured into manufacturing many new product lines, including Pancrease, a prescription medicine used to treat people who cannot digest food normally because their pancreas does not make enough enzymes due to cystic fibrosis or other conditions. At the end of December 2019, the accounting records relating to the Pancrease product line showed the following:

Work in process inventory, December 31, 2019 $ 9,720

Finished goods inventory, December 31, 2018 $ 0

Finished goods inventory, December 31, 2019 $ 7,300

Sales revenue $ 251,000

Customer service toll-free line expense $ 3,900

Factory utilities $ 12,400

Delivery expense $ 6,500

Sales salaries expense $ 10,300

Factory maintenance services $ 2,900

Direct Labour $ 46,600

Direct material purchases $ 96,000

Rent on factory $ 24,500

Raw materials inventory, December 31, 2018 $ 29,500

Raw materials inventory, December 31, 2019 $ 19,800

Work in process inventory, December 31, 2018 $ 0

Required: 1. Prepare a schedule of cost of goods manufactured for Vivus Pancrease product line for the year ended December 31, 2019. 10 marks

2. Prepare an income statement for Vivus Pancrease product line for the year ended December 31, 2019. 10 marks