Conklin Corporation recorded the following activities during its first month of operations: • Purchased materials costing $250,000. •Used direct materials in production costing $230,000. •Incurred direct labor costs of $300,000, of which $275,000 had actually been paid at the end of the month. •Applied manufacturing overhead at a rate of $15 per direct labor hour.Incurred actual manufacturing overhead costs of $175,000.
•Transferred completed jobs costing $520,000 to finished goods. Sold completed jobs for $700,000. The cost applied to the jobs sold totaled $480,000. •Closed the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the month. •Incurred selling and administrative costs of $100,000 during the month a. Prepare Conklin Corporation's income statement for its first month of operations. Ignore income taxes.