At the end of December 2018,the accounting records showed the following: Given InformationData Table - X Balances: Beginning Ending Direct Materials 13,200 $10,000 Work-in-Process Inventory 0 2,500 Finished Goods Inventory 0 6,100 Other information Direct materials purchases $31,000 Plant janitorial services 600 Sales salaries 5,000 Delivery costs 1,400 Net sales revenue 110,000 Utilities for plant 2,000 Rent on plant 11,000 Customer service hotline costs 1,700 Direct labor 22,000
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Requirement 1. Prepare a schedule of cost of goods manufactured for Natural Bones for the year ended December 31, 2018.
Natural Bones
Schedule of Cost of Goods Manufactured
Year Ended December 31, 2018
Direct Materials Used:
Manufacturing Overhead:
Total Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Cost of Goods Manufactured
Requirement 2. Prepare an income statement for Natural Bones for the year ended December 31,2018.
Natural Bones
Income Statement
Year Ended December 31, 2018
Revenue:
Cost of Goods Sold:
Gross Profit
Selling and Administrative Expenses:
Total Selling and Administrative Expenses
Operating Income
Requirement 3. How does the format of the income statement for Natural Bones differ from the income statement of a merchandiser? A manufacturer's cost of goods sold is based on itsA manufacturer's cost of goods sold is based on its. a. cost of goods manufactured. b. direct materials used. c. manufacturing costs incurred during the year. d. operating income. In contrast, a merchandiser's cost of goods sold is based on its:.a. ending inventory.
b. gross profit.
c. merchandise purchases.
d. operating income. Requirement 4.
Natural Bones manufactured 17,300 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent.