Westlake, Inc. produces metal fittings for the aerospace industry. The administrative and manufacturing operations occupy the same 200,000 square foot building. The manufacturing plant uses 150,000 square feet. Depreciation is assigned based on building use. Indirect labor represents 15 percent of the total manufacturing plant labor. The financial information for the year just ended is shown as follows. (Thousands of dollars) Administrative costs Total building depreciation Direct materials inventory, January 1 Direct materials inventory, December 31 Direct materials purchased during the year Finished goods inventory, December 31 Indirect labor Maintenance on plant machinery Marketing costs Operating profit Other plant overhead Plant supervision and administration Plant supplies and indirect materials Sales revenue Taxes on manufacturing property Work-in-process inventory, January 1 Work-in-process inventory, December 31 $ 340 760 33 38 1,588 98 288 158 138 996 101 173 85 6,800 135 98 128 $ 98 WESTLAKE, INC. Cost of Goods Manufactured and Sold Statement For the Year Ending December 31 (Thousands of Dollars) Beginning work-in-process, January 1 Manufacturing costs: Direct materials: Beginning direct materials inventory, January 1 $ 33 Add: Direct materials purchased 1,588 Direct materials available for use $ 1,621 Less: Ending direct materials inventory, December 31 38 Materials used Direct labor Manufacturing overhead: Indirect labor 288 Depreciation on plant 570 Maintenance on plant machinery 158 Other plant overhead 101 $ 1,583 1,632 101 173 Other plant overhead Plant supervision and administration Plant supplies and indirect materials Taxes on manufacturing property 85 135 Total overhead 1,510 $ 4,725 4,823 128 $ 4,695 Total manufacturing costs Total cost of work-in-process during the year Less: Ending work in process, December 31 Costs of goods manufactured this year Add: Beginning finished goods, January 1 Cost of goods available for sale Less: Ending finished goods, December 31 Cost of goods sold WESTLAKE, INC. Income Statement For the Year Ending December 31 (Thousands of Dollars) Sales revenue Less: Cost of goods sold Gross margin Administrative costs Marketing costs Depreciation on admin portion of building 0 Total operating costs Operating profit