Mirror Industries Manufactures Electric Trolling Motors Required:
A

Essay

Mirror Industries manufactures electric trolling motors. Sales for the month totaled $1,700,000. Information regarding resources for the month follows:
$$\begin{array} { l r r } & \text { Resources Used } & \text { Resources Supplied } \\\text { Administrative } & \$ 100,000 & \$ 140,000 \\\text { Customer service } & 20,000 & 40,000 \\\text { Depreciation } & 120,000 & 200,000 \\\text { Energy } & 100,000 & 100,000 \\\text { Engineering } & 50,000 & 52,000 \\\text { Long-term labor } & 50,000 & 70,000 \\\text { Marketing } & 140,000 & 150,000 \\\text { Materials } & 300,000 & 300,000 \\\text { Parts management } & 60,000 & 70,000 \\\text { Quality inspections } & 90,000 & 100,000 \\\text { Setups } & 140,000 & 200,000 \\\text { Temporary labor } & 40,000 & 48,000\end{array}$$
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.