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The administrative offices and manufacturing plant of Billings Tool & Die share the same building....

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Accounting

The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year.

Administrative costs $ 1,651
Building and machine depreciation (75% of this amount is for factory) 1,000
Building utilities (90% of this amount is for factory) 1,210
Direct labor 835
Direct materials inventory, December 31 15
Direct materials inventory, January 1 12
Direct materials purchases 3,650
Factory supervision 484
Finished goods inventory, December 31 69
Finished goods inventory, January 1 52
Indirect factory labor 908
Indirect materials and supplies 689
Marketing costs 869
Property taxes on building (85% of this amount is for factory) 900
Sales revenue 12,945
Work-in-process inventory, December 31 25
Work-in-process inventory, January 1 31

Required:

1. Prepare a cost of goods sold statement.

2. Prepare an income statement.

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