Answer:
Clarkson Company
Income statement for the year ended June 30, 2020
Sales Revenue                                                               $555,000
Less Costs of Goods Sold :
Opening Finished Goods Inventory            $96,100
Add Cost of Goods Manufactured            $390,520
Less Closing Finished Goods Inventory    ($19,900)  ($466,720)
Gross Profit                                                                       $83,280
Explanation:
First prepare a Schedule of Manufacturing Costs to determine the Cost of Goods Manufactured.
Schedule of Manufacturing Costs
Factory Insurance                                                      $4,700
Raw Materials ($48,100 + $96,500 - $39,700)    $104,900
Factory Machinery Depreciation                              $16,100
Factory Utilities                                                        $28,700
Direct Labor                                                            $139,350
Plant Manager’s Salary                                             $61,100
Indirect Labor                                                          $24,560
Factory Property Taxes                                             $9,610
Factory Repairs                                                          $1,500
Add Opening Work In Process Inventory              $19,900
Less Closing Work In Process Inventory              ($19,900)
Cost of Goods Manufactured                              $390,520