Answer and Explanation:
a. The preparation of the cost of goods manufactured statement is as follows:
Opening work in process $119,760
Direct Material    
Opening inventory	$178,750  
Add: Material Purchased	$343,200  
Cost of Materials Available  $521,950  
Less: Ending Inventory -$151,940  
Cost of Direct Materials Used $370,010  
Direct Labor  $321,750  
Factory Overhead:    
Indirect Labor	$34,320  
Machinery Depreciation	$20,740  
Heat, Light and Power	$7,150  
Supplies	$5,720  
Property Taxes	$5,010  
Miscellaneous Costs	$9,300  
Total Factory Overhead $82,240  
Total Manufacturing Costs Incurred $774,000
Total Manufacturing Costs  	$893,760
Less: Ending Work in Process $101,800
Cost of Goods Manufactured $791,960
b. Now the cost of goods sold is 
Cost of Goods Sold= Cost of Goods Manufactured + Beginning Finished Goods - Ending Finished Goods
= $791,960 + $91,160 - $103,320
= $779,800