The following information is available for Aikman Company. January 1, 2017 December 31, 2017
Raw materials inventory $21,000 $30,000
Work in process inventory 13,500 17,200
Finished goods inventory 27,000 21,000
Materials purchased $150,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales revenue 910,000
Required:
1. Compute cost of goods manufactured.
2. Prepare an income statement through gross profit.

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