The Anthony Company, a sole proprietorship, reports the following information pertaining to its operating activities:

During the year, the company purchased $40,000 of direct materials and incurred $21,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $18,000. Selling and administrative expenses amounted to $60,000, and the company€™s annual sales amounted to $250,000.
a. Prepare Anthony€™s schedule of the cost of finished goods manufactured.
b. Prepare Anthony€™s income statement (ignore incometaxes).

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Ending Beginning Balance Balance Materials Inventory Work in Process Inventory Finished Goods Inventory $10,000 $40,000 29,000 60,000 52,000 42,000 ..