Information from the Records of the Shawnee Production Company for the Month

Essay

Information from the records of the Shawnee Production Company for the month of January is as follows:
$\begin{array}{lr}\text {Purchases of direct materials}&\$18,000\\\text {Indirect labor}&5,000\\\text { Direct labor } & 10,400 \\\text { Depreciation on factory machinery } & 3,000 \\\text { Sales } & 55,300 \\\text { Selling and administrative expenses } & 6,300 \\\text { Rent on factory building } & 7,000\end{array}$
$\begin{array}{lrr}\text { Inventories:}&\text { January 1}&\text { January 31}\\\text { Direct materials } & \$ 8,000 & \$ 8,700 \\\text { Work-in-process } & 2,100 & 3,200 \\\text { Finished goods } & 5,000 & 5,700\end{array}$

Required:
(a) Prepare a statement of cost of goods manufactured and sold for the month of January.
(b) Prepare a gross margin income statement for the month of January.