Reference no: EM132611526

Antonio Company is a manufacturer of cockroach repellents. On December 31, 2019, the following inventory balances are as follows:

Raw Materials Inventory, December 31, 2019 $242,500

Work in Process Inventory, December 31, 2019 $185,500

Finished Goods Inventory, December 31, 2019 $204,600

On 2020, sales made by Antonio totaled $2,081,700 and made a gross profit of 35% of cost of goods sold. Raw material purchases made by Antonio equaled $1,132,500. Operating expenses incurred and paid by the company was $239,700. Income tax rate for 2020 is 30%.

Additional information:

a) Finished Goods Inventory and Work in Process Inventory on December 31, 2020 was 30% and 25% of cost of goods sold, respectively.

b) Prime cost totaled $1,600,000.

c) Of the raw materials available for use, 20% were unused and others were put into process and used to make finished goods.

d) All raw material inventories are direct to the production process.

e) Actual costing is used in accounting for overhead, based on the information above.

Required: Prepare the following:

Question 1: Statement of cost of goods manufactured

Question 2: Income statement (including the cost of goods sold computation)