Ace Company began business on January 1, 2010 to make and sell chairs. During the year, Ace rented a factory for $5,000 per month, spent $100,000 on component parts for chairs, $40,000 on factory labor, and $10,000 to advertise the chairs. Ace used 90% of the component parts to make 500 chairs and sold 490 of the chairs for $600 each. 100 chairs were in process at the end of the year with a cost of $9,000. Each month, Ace paid $2,000 for secretarial services. Ace also paid sales commissions of $100 for each chair sold.

(a) What was the cost per chair completed ?

(b) Prepare a schedule of cost of goods manufactured.

(c) Prepare an income statement.