XYZ Products Company accumulated the following data for 2005.

Jan 1, 2005

Dec 31, 2005

Inventories:

Finished Goods

$ 52,000

$ 54,000

Work in Process

29,600 27,800

Raw materials

14,200

15,000

Direct labour

95,000

Raw material purchases

138,000

Indirect labour

15,300

Indirect materials and supplies

10,800

Factory utilities

18,600

Depreciation expense- Factory

14,000

Factory rent

18,000

Payroll taxes- Factory wages

8,100

Repairs and maintenance

6,000

Insurance expense- Factory

6,800

Miscellaneous factory expenses

5,200

Sales

710,000

Sales discount

12,000

Selling expenses

95,600

General expenses

75,300

Interest expenses

7,000

Required:

1. Prepare a statement of cost of goods manufactured.

2. Prepare an income statement (assume an income tax rate of 25%)