Walk-Toki Manufacturing Company is a producer of music compact discs (CDs) and tapes. The following account balances are for the year ended December 31, 2020

Administrative expenses

$ 60,000

Depreciation expense - Manufacturing equipment

$50,000

Direct labor

$468,000

Manufacturing supplies expense

$40,000

Indirect labor

$36,000

Beginning inventories, January 1:

Direct materials

$14,000

Work in process

$20,000

Finished goods

$128,000

Ending inventories, December 31:

Direct materials

$44,000

Work in process

$56,000

Finished goods

$92,000

Direct materials purchases

$216,000

Rent expense - Factory

$28,000

Sales

$1,400,000

Selling expense

$72,000

Other manufacturing overhead

$126,000

Required;

(i)Prepare a statement of cost of goods manufactured for Walk-Toki Manufacturing Company for the year ended December 31. (12 marks)

(ii)Prepare an income statement for the year ended December 31, 2020. (08 mark)