Weygandt, Financial & Managerial Accounting, 2e uRcES eork Empire Company is a manufacturer of smart phones ts controtier resignecd In October 2017. An inesperienced assistant accountant has prepared RACK the following income statement for the month of October 2017 EMPIRE COMPANY For the Month Ended October 31, 2017 Sales r Less: Operating expenses $794,000 Raw materia's purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Deprecation on sales equipment Depreciation on factory equipment Indirect labor cost Ublities expense Insurance expense 264,100 190,200 92,800 77,400 61,500 44,600 Study 28,900 11.700 500 811,900 17,900) Net loss Prior to October 2017, the company had ben proftabie every month The company's president is concerned about tre accuracy of the inceme statement. As her friend, you have been asked to review the income statement and make necessary manufacturing cost data, you have acquined adatonal information as foliows cornections. Ater eamining othar . Inventory balances at the beginning and end of October were: $20,600 20,600 29,300 835,000 14,000 53,60 Finished gpods 2. Only 77% of the utlities expense and 60% ce thg rsuranco expense apply to factory aperatinn. The venaiting omound should be doped be seling and administrative ectiveS