The Sebeka Company reports the following information pertaining to the month of January

The Sebeka Company reports the following information pertaining to the month of January.

 Ending

Balance Beginning

Balance Materials Inventory$15,000 $45,000 Work in Process Inventory 30,000  70,000 Finished Goods Inventory 50,000  40,000 

During January, the company purchased $60,000 of direct materials and incurred $80,000 of direct labor costs. Total manufacturing overhead costs for the month amounted to $25,000. Selling and administrative expenses amounted to $100,000, and the company's January sales amounted to $500,000.

a. Prepare Sebeka's schedule of the cost of finished goods manufactured.

b. Prepare Sebeka's income statement (ignore income taxes).