Foxwood Company data for 2014:

Sandpaper $ 2,000
Materials-handling costs 70,000
Lubricants and coolants 5,000
Miscellaneous indirect manufacturing labor 40,000
Direct manufacturing labor 300,000
Direct materials inventory, Jan. 1 , 2014 40,000
Direct materials inventory, Dec. 31, 2014 50,000
Finished goods inventory, Jan. 1, 2014 100,000
Finished goods inventory, Dec. 31, 2014 150,000
Work-in-process inventory, Jan. 1, 2014 10,000
Work-in-process inventory, Dec. 31, 2014 14,000
Plant-leasing costs 54,000
Depreciation - plant equipment 36,000
Property taxes on plant equipment 4,000
Fire insurance on plant equipment 3,000
Direct materials purchased 460,000
Revenues 1,360,000
Marketing promotions 60,000
Marketing salaries 100,000
Distribution costs 70,000
Customer-service costs 100,000
 Fixwood Company
Schedule of Cost of Goods Manufactured
For the year Ended December 31, 2014

Direct materials
Beginning inventory, January 1, 2014 $ 40,000 variable costs
Purchases of direct materials 460,000
Costs of direct materials available for use 500,000
Ending inventory, December 31, 2014 50,000
Direct materials used 450,000
Direct manufacturing labor 300,000
Indirect manufacturing costs
Sandpaper 2,000
Materials-handling costs 70,000
Lubricants and coolants 5,000
Miscellaneous indirect manufacturing labor 40,000
Plant-leasing costs 54,000 fixed costs
Depreciation - plant equipment 36,000
Property taxes on plant equipment 4,000
Fire insurance on plant equipment 3,000 214,000

Manufacturing costs incurred during 2014 964,000

Beginning work-in-process inventory, January 1, 2014 10,000
Total manufacturing costs to account for 974,000
Ending work-in-process inventory, December 31, 2014 14,000
Costs of goods manufactured (to income statement) 960,000

Fixwood Company
Income Statement
For the year Ended December 31, 2014

Revenues 1,360,000
Cost of goods sold
Beginning finished goods inventory, January 1, 2014 100,000
Cost of goods manufactured (see above) 960,000
Cost of good available for sale 1,060,000
Ending finished good inventory, December 31, 2014 150,000 910,000
Gross margin (gross profit) 450,000
Operating costs
Marketing promotions 60,000
Marketing salaries 100,000
Distribution costs 70,000
Customer-service costs 100,000 330,000
Operating income 120,000