Chewy Bones manufactures its own brand of pet chew bones. At the end of December 2018, the accounting records showed the following: Balances: Beginning Ending Direct Materials $ 13,400 $ 10,500 Work-in-Process Inventory 0 1,500 Finished Goods Inventory 0 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 Requirements 1.Prepare a schedule of cost of goods manufactured for Chewy Bones for the year ended December 31, 2018. 2.Prepare an income statement for Chewy Bones for the year ended December 31, 2018. 3.How does the format of the income statement for Chewy Bones differ from the income statement of a merchandiser? 4.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.
Chewy Bones manufactures its own brand of pet chew bones. At the end of December 2018, the accounting records showed the following:
|
Balances: |
Beginning |
Ending |
|
Direct Materials |
$ 13,400 |
$ 10,500 |
|
Work-in-Process Inventory |
0 |
1,500 |
|
Finished Goods Inventory |
0 |
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 |
Requirements
1.Prepare a schedule of cost of goods manufactured for Chewy Bones for the year ended December 31, 2018.
2.Prepare an income statement for Chewy Bones for the year ended December 31, 2018.
3.How does the format of the income statement for Chewy Bones differ from the income statement of a merchandiser?
4.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.
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