Preparing a schedule of cost of goods manufactured and an income statement for a manufacturing companyChewy Bones manufactures its own brand of pet chew bones. At the end of December 2018 the accounting records showed the following:RequirementsPrepare a schedule of cost of goods manufactured for Chewy Bones for the year ended December 31, 2018.Prepare an income statement for Chewy Bones for the year ended December 31, 2018.How does the format of the income statement for Chewy Bones differ from the income statement of a merchandiser?Chewy Bones manufactured 17,500 units of its product in 2018. Compute the company’s unit product cost for the year, rounded to the nearest cent. Balances:BeginningEndingDirect Materials$ 13,400$ 10,500Work-in-Process Inventory1,500Finished Goods Inventory5,400Other information:Direct materials purchases$ 39,000Plant janitorial services900Sales salaries5,100Delivery costs1,700Net sales revenue115,000Utilities for plant1,200Rent on plant9,000Customer service hotline costs1,600Direct labor16,000

Answered: Balances: Beginning Ending Direct…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Preparing a schedule of cost of goods manufactured and an income statement for a manufacturing company

Chewy Bones manufactures its own brand of pet chew bones. At the end of December 2018 the accounting records showed the following:

Requirements

Prepare a schedule of cost of goods manufactured for Chewy Bones for the year ended December 31, 2018.
Prepare an income statement for Chewy Bones for the year ended December 31, 2018.
How does the format of the income statement for Chewy Bones differ from the income statement of a merchandiser?
Chewy Bones manufactured 17,500 units of its product in 2018. Compute the company’s unit product cost for the year, rounded to the nearest cent.

Balances:
Beginning
Ending
Direct Materials
$ 13,400
$ 10,500
Work-in-Process Inventory
1,500
Finished Goods Inventory
5,400
Other information:
Direct materials purchases
$ 39,000
Plant janitorial services
900
Sales salaries
5,100
Delivery costs
1,700
Net sales revenue
115,000
Utilities for plant
1,200
Rent on plant
9,000
Customer service hotline costs
1,600
Direct labor
16,000

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