1. Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

During 20x1, the company purchased $240,000 of raw material and spent $420,000 for direct labor. Manufacturing overhead costs were as follows:

Sales revenue was $1.210.000 for the year. Selling and administrative expenses for the year amounted to $105.000. The firm's tax rate is 35 percent.

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare a schedule of cost of goods sold.

3. Prepare an income statement.