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Terra Cotta Designs manufactures custom tiles. The following information relates to the fiscal year ending December 31, 2014: Beginning balance in Raw Material Inventory $ 448,170 Purchases of raw material 1,498,490 Ending balance in Raw Material Inventory 201,520 Beginning balance in Work in Process Inventory 649,440 Ending balance in Work in Process Inventory 351,200 Direct labor cost 2,501,720 Manufacturing overhead applied 648,160 Beginning balance in Finished Goods Inventory 748,570 Ending balance in Finished Goods Inventory 348,030 Sales 7,049,240 Selling expenses 498,950 General and administrative expenses 851,590

(a) Prepare a schedule of cost of goods manufactured. Assume that there are no indirect material costs. Terra Cotta Designs Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2014 $ :: : $ $ : $

(b) Prepare an income statement for fiscal 2014. Ignore income taxes. Terra Cotta Designs Income Statement For the Year Ended December 31, 2014 $ :: $ : : :: $

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