Following are the selected account balances of Randa Company:

Exercise 18-12 Income statement preparation L.O. P2

Following are the selected account balances of Randa Company:

Sales	$	1,078,000
Raw materials inventory, Dec. 31, 2010		38,000
Goods in process inventory, Dec. 31, 2010		55,000
Finished goods inventory, Dec. 31, 2010		66,800
Raw materials purchases		172,700
Direct labor		242,000
Factory computer supplies used		22,900
Indirect labor		59,000
Repairs—Factory equipment		7,250
Rent cost of factory building		50,000
Advertising expense		105,000
General and administrative expenses		129,000
Raw materials inventory, Dec. 31, 2011		40,500
Goods in process inventory, Dec. 31, 2011		44,500
Finished goods inventory, Dec. 31, 2011		71,600

Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $561,850. (Input all amounts as positive values. Omit the "$" sign in your response.)

RANDA COMPANY Income Statement For Year Ended December 31, 2011
Sales		$ 1,078,000
Cost of goods sold
Finished goods inventory, December 31, 2010	$ 66,800
Cost of goods manufactured	561,850
Cost of goods available for sale	628,650
Less: Finished goods inventory, December 31, 2011	71,600
Cost of goods sold		557,050
Gross profit		520,950
Operating expenses
General and administrative expenses
Advertising expenses
Total operating expenses		234,000
Operating income		$ 286,950