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The Splendid Staircases Shop Ltd$.$ manufactures one of a kind, special order spiral staircases in its Olds,

AB factory. The following is a summary of transactions in $2017.$

$1.$ The manufacturing overhead is applied using a budgeted overhead application rate based on

direct labour hours. The budget for $2017$ called for $$240,000$ of manufacturing overhead costs and $9,600$ direct labour hours.

$2.$ The opening work in process at January $1,2017$ was $$12,000.$

$3.$ The only job unfinished on December $31,2017$ was JOB NO$.109,$ on which total labour charges were

$$2,880(120$ direct labour hours at $$24$ per hour$)$ and total direct material charges were $$9,000.$

$4.$ The balance of raw materials inventory on January $1,2017$ was $$15,000.$ Raw materials placed into production during $2017$ totalled $$140,000$ of which $$23,000$ was indirect raw materials. The balance of ending raw material inventory was $$22,000$ on December $31,2017$

$5.$ The finished good inventory balance at January $1,2017$ was $$15,000.$ The unadjusted ending finished goods inventory on December $31,2017$ was $$25,000.$

$6.$ The total factory labour costs $($direct labour and indirect labour$)$ for the year were $$260,000.$ Direct labour hours in $2017$ totaled $8,700.$

$7.$ Other costs incurred during the year were:

advertising $$30,000$

office $$35,000$

utilities $-$ factory $$90,000$

sales commissions $$45,000$

insurance $-$ factory $$44,800$

$8.$ The company sold $300$ staircases at an average selling price of $$3,000$

$9.$ Any under$-$applied or over$-$applied overhead is closed according to IAS$2.$

REQUIRED: Prepare a schedule of cost of goods manufactured and an income statement for the year ending December $31,2017$ if the income tax rate is $16\%.$

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