Which balance sheet is most appropriate for a manufacturing business? Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory Materials inventory on Feb. 28 Direct materials purchased Direct materials used. Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period $3,300 50% of materials inventory on Jan. 31 $12,300 3 times the direct labor incurred $27,300 70% of Cost of Goods Manufactured $9,000 less than Cost of Goods Sold Account Materials Inventory Work in Process Inventory Finished Goods Inventory Account Balances Jan. 31 Feb. 28 Costs Incurred Direct Materials Used 27,000 Direct Labor Incurred 16,500 Factory Overhead Incurred Cost of Goods Sold Sample Company A Income Statement For the Year Ended December 31, 20Y8 $42,000 Sales Finished goods inventory, January 1, 2018 $5,250 Cost of goods manufactured 6,400 Cost of finished goods available for sale $11,650 Finished goods inventory, December 31, 20Y8 (400) Cost of goods sold (11,250) Gross profit $30,750 Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income Income Statement B $6,400 5,250 (11,650) $19,100 Sample Company B Income Statement For the Year Ended December 31, 20Y8 Sales $42,000 Beginning inventory $5,250 Net purchases 6,400 Inventory available for sale $11,650 Income Statement B Sample Company B Income Statement For the Year Ended December 31, 20Y8 $42,000 Sales Beginning inventory $5,250 Net purchases 6,400 Inventory available for sale $11,650 Ending inventory (400) Cost of goods sold (11,250) Gross profit $30,750 Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income $6,400 5,250 (11,650) $19,100 Balance Sheet C Sample Company C Balance Sheet December 31, 20Y8 Assets Cash Accounts receivable (net) Inventory $20,800 10,000 6.000 Cash Accounts receivable (net) Inventory Supplies Land Total assets Sample Company C Balance Sheet December 31, 2018 Assets Liabilities $20,800 10,000 6,000 2,100 17,000 $55,900 Accounts payable $17,800 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Balance Sheet D $19,000 19,100 38,100 $55,900 Cash Sample Company D Balance Sheet December 31, 20Y8 Assets $20,800 Cash Accounts receivable (net) Inventory: Direct materials Work in process Finished goods Total inventory Supplies Land Total assets Sample Company D Balance Sheet December 31, 20Y8 Assets Liabilities $20,800 10,000 $2,500 1,500 2,000 6,000 2,100 17,000 $55,900 Accounts payable $17,800 Stockholders' Equity Common stock $19,000 Retained earnings 19,100 Total stockholders' equity Total liabilities and stockholders' equity 38,100 $55,900 Which income statement is most appropriate for a manufacturing business