The following data are taken from the general ledger and other records of Valley View Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,000

Materials inventory (January 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

Work in process inventory (January 1) . . . . . . . . . . . . . . . . . . . . . . . 24,000

Finished goods inventory (January 1) . . . . . . . . . . . . . . . . . . . . . . . . 32,000

Materials purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Factory overhead (including $1,000 of indirect materials used and.. 12,000

$3,000 of indirect labor cost)

Selling and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Inventories at January 31:

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

a. Prepare a statement of cost of goods manufactured.

b. Prepare the cost of goods sold section of the income statement.