Prepare a cost of goods manufactured schedule and partial financial statements. At May 31, 2022, the accounts of Lopez Company show the following.

1. May 1 inventories - finished goods $12,600, work in process $14,700 and raw materials $8,200.
2. May 31 inventories - finished goods $9,500, work in process, $15,900, and raw materials $7,100.
3. Debit postings to work in process were direct materials, $62,400, direct labor $50,000, and manufacturing overhead applied $40,000.
4. Sales revenue totaled $215,000

Required:
a. Prepare a condensed cost of goods manufactured schedule.
b. Prepare an income statement for May through gross profit.
c. Indicate the balance sheet presentation of the manufacturing inventories at May 31 , 2020

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?