W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips' accounting records provide the following information: Purchases of raw materials $320,000 Beginning materials inventory 46,800 Ending materials inventory 66,800 Direct labor 200,000 Indirect labor 40,000 42,000 Rent, factory building Depreciation, factory equipment 60,000 Utilities, factory 11,900 Salary, sales supervisor 90,000 180,000 Commissions, salespersons General administration 300,000 Beginning work-in-process inventory 13,040 Ending work-in-process inventory 14,940 Beginning finished goods inventory 80,000 Ending finished goods inventory 114,100 Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users. Cost of Goods Manufactured 1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, first enter a minus (-) sign. W. W. Phillips Company Score: 98/107 Statement of Cost of Goods Manufactured For Last Year Direct materials $300,000.00 200,000.00 Direct labor Add: Indirect labor Rent, factory building Depreciation, factory equipment $40,000.00 42,000.00 60,000.00 11,900.00 Utilities, factory Total cost of product $653,900.00 9 Beginning work in process 13,040.00 (14,940.00) 10 Ending work in process 11 Cost of goods manufactured $652,000.00