Information from the Records of the Navaho Industries for the Month

Essay

Information from the records of the Navaho Industries for the month of July is as follows:
$$\begin{array} { l r } \text { Purchases of direct materials } & 24,000 \\\text { Indirect labor } & 6,500 \\\text { Direct labor } & 13,200 \\\text { Depreciation on factory machinery } & 3,600 \\\text { Sales } & 75,300 \\\text { Selling and administrative expenses } & 8,900 \\\text { Rent on factory building } & 8,400\end{array}$$
$$\begin{array} { l r r } \text { Irventories: } & \text { July 1 } & \text { July 31 } \\\text { Direct materials } & \$ 8 , 0 0 0 & \$ 6 , 7 0 0 \\\text { Work-in-process } & 1,100 & 1,600 \\\text { Finished goods } & 9,000 & 6,800\end{array}$$
Required:
(a) Prepare a statement of cost of goods manufactured and sold for the month of July.
(b) Prepare a gross margin income statement for the month of July.