Problem - The following information is available for Yu Company for 2012:

Inventories                     January 1              December31

Materials                         $47,000                 $58,500

Work in process               67,000                  59,000

Finished Goods                 70,000                 62,000

Advertising Expense                                                   $42,500

Depreciation expense-office equipment                        13,800  

Depreciation expense-factory equipment                      9,000

Direct labor                                                               115,000

Heat, light, and power- factory                                    3,600

Indirect labor                                                            14,400

Materials purchased                                                   76,000

Office salaries expense                                              46,800

Property taxes-factory                                               2,500

Property taxes-headquaters building                           8,400

Rent expense-factory                                                4,000

Sales                                                                       529,000

Sales salaries expense                                              82,500

Supplies-factory                                                       3,000

Miscellaneous cost-factory                                         2,000

Instructions -

1. Prepare the 2012 statement of cost of goods manufactured.

2. Prepare the 2012 income statement.