Question: Problem for Manufacturing Accounting: During July, Redard Corp's purchase of direct materials totaled $139,000; direct labor for the month was 4,200 hours at $12.75 per hour. Redard also incurred the following overhead costs: utilities, $ 5,975, supervision, 16,000, indirect materials, 6,985, depreciation, 8,500, insurance 5,470 and miscellaneous 1,500. Beginning inventory accounts were as follows: Materials Inventory, 48,600, Work in Process Inventory, 54,250, and Finished Goods Inventory $38,500. Ending inventory as follows: Materials Inventory, 50,100, Work in Process Inventory, 48,400, and Finished Goods Inventory $37,450. Prepare a statement of cost of goods manufactured and the cost of goods sold section of the income statement.