Reference no: EM131223643

(Part Level Submission) Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $ 794,500 Less: Operating expenses Raw materials purchases $ 264,000 Direct labor cost 189,200 Advertising expense 91,100 Selling and administrative salaries 76,700 Rent on factory facilities 61,500 Depreciation on sales equipment 44,900 Depreciation on factory equipment 32,600 Indirect labor cost 28,500 Utilities expense 12,400 Insurance expense 8,700 809,600 Net loss $( 15,100 ) Prior to October 2017, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $ 20,100 $ 35,200 Work in process 19,500 14,300 Finished goods 30,700 53,100 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. *(a) Prepare a schedule of cost of goods manufactured for October 2017. (Round answers to 0 decimal places, e.g. 125.)