The Huron Corporation income statement for 2002 shows: Sales of $2,105,000 with a cost of goods sold of $727,500, resulting in a gross profit of $1,377,500. Total operating expenses were $679,000, leaving a net profit of $698,500.

1. HURON CORPORATION
INCOME STATEMENT
FOR THE YEAR ENDED 2002
Sales 2,105,000
Cost Of Goods Sold
Direct Material - (Opening) 89,000
+ Purchases 731,000
Direct material available for use 820,000
- Direct Material - (Closing) 59,000
Direct Material Used 761,000
+ Direct Labour 474,000
Prime Cost 1,235,000
+ Applied Factory Overhead 577,500
+ Indirect Labour Cost 150,000
+ Indirect Material Used 45,000
Total Manafacturing Cost 772,500
+ WIP - (Opening) 0
Cost of goods to be manafactured 772,500
- WIP - (Closing) 40,000
Cost Of Goods Manafactured 732,500
+ Finished Goods - (Opening) 35,000
Cost Of Goods Available For Sale 767,500
- Finished Goods - (Closing) 40,000
Cost Of Goods Sold 727,500
Gross Profit 1,377,500
- Operating Expenses
Selling Expense 269,000
Property Taxes 90,000
Depreciation on factory building 125,000
Income tax expenses 25,000
Depreciation on factory equipment 60,000
Insurance of factory and equipment 40,000
Factory utilities 70,000
Total Expenses 679,000

2. Net Profit 698,500