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CW$.$ W$.$ Phillips Company produced $4,000$ leather recliners during the year. These recliners sell for $$400$ each. Phillips had $500$ recliners in finished goods inventory at the beginning of the year. At the end of the year, there were $700$ recliners in finished goods inventory. Phillips$$ accounting records provide the following information:

Purchases of raw materials$$320,000$ Beginning materials inventory$46,800$ Ending materials inventory$66,800$ Direct labor$200,000$ Indirect labor$40,000$ Rent, factory building$42,000$ Depreciation, factory equipment$60,000$ Utilities, factory$11,900$ Salary, sales supervisor$90,000$ Commissions, salespersons$180,000$ General administration$300,000$ Beginning work$-$in$-$process inventory$13,040$ Ending work$-$in$-$process inventory$14,940$ Beginning finished goods inventory$80,000$ Ending finished goods inventory$114,1001.$ Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, first enter a minus $(-)$ sign. $3.$ Prepare an income statement for external users. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement.

W$.$ W$.$ Phillips Company

Income Statement

For Last Year

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