STATEMENT OF COST OF GOODS MANUFACTURED

Direct materials
Begining inventory $ 130,000
purchase of direct material $ 256,000
cost of direct material available for use $ 386,000
ending inventory $ 68,000
direct material used $ 318,000
direct manufacturing labor $ 212,000
manufacturing overhead cost
inderect manfacturing labor $ 96,000
indirect material $ 28,000
plant insurance $ 4,000
depreciation-plant, building and equipment $ 42,000
plant utilities $ 24,000
repair and maintenance-plant $ 16,000
equipment leasing cost $ 64,000
TOTAL MANUFACTURING OVERHEAD COSTS $ 274,000
manufacturing cost incurred during 2014 $ 804,000
begining work-in process inventory $ 166,000
TOTAL MANUFACTURING COST TO ACCOUNT FOR $ 970,000
ending work-in process inventory $ 144,000
COST of goods manufatured $ 826,000

INCOME STATEMENT
REVENUES $ 1,200,000
COST OF GOODS SOLD
Beginning finished goods inventory $ 246,000
COST of goods manufatured $ 826,000
Cost of goods available for sale $ 1,072,000
Ending finished goods inventory $ 204,000
Cost of goods sold $ 868,000
gross margin $ 332,000
Operating costs
marketing distribution, and customer-service cost $ 124,000
general and administrative costs $ 68,000
Total operating costs $ 192,000
Operating income $ 140,000