Kildeer Company makes easels for artists. During the last calendar year, a total of 21,000 easels were made, and 22,000 were sold for $52 each. The actual unit cost is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Required: Ending units Dollar amount The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $180,500. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $109,200 for 2,800 easels. 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Cost of goods sold $15.00 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 Sales 4.00 6.00 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory 14.00 Cost of goods sold Gross margin Less operating expenses: Commissions Advertising co-pays Administrative expenses $39.00 Operating income 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. ✓ Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 ✓ $ ✓ Percent % % % % %

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Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm.
Kildeer Company makes easels for artists. During the last calendar year, a total of 21,000 easels were
made, and 22,000 were sold for $52 each. The actual unit cost is as follows:
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total unit cost
Required:
Ending units
Dollar amount
The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments
totaling $91,500. Administrative expenses, all fixed, equaled $180,500. There were no beginning and
ending work-in-process inventories. Beginning finished goods inventory was $109,200 for 2,800 easels.
1. Calculate the number and the dollar value of easels in ending finished goods inventory.
Sales
$15.00
4.00
2. Prepare a cost of goods sold statement.
Kildeer Company
Statement of Cost of Goods Sold
For the Year Ended December 31
✓
6.00
Cost of goods manufactured
Add: Beginning finished goods inventory
Cost of goods available for sale
Less: Ending finished goods inventory
Cost of goods sold
Cost of goods sold
14.00
3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the
amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35%
and you would enter 52.35 as your answer.
Gross margin
Less operating expenses:
Commissions
Advertising co-pays
Administrative expenses
$39.00
Operating income
Kildeer Company
Income Statement: Absorption Costing
For the Year Ended December 31
✓
$
Percent
%
%
%
%
%
Transcribed Image Text:Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm. Kildeer Company makes easels for artists. During the last calendar year, a total of 21,000 easels were made, and 22,000 were sold for $52 each. The actual unit cost is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Required: Ending units Dollar amount The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $180,500. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $109,200 for 2,800 easels. 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Sales $15.00 4.00 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 ✓ 6.00 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Cost of goods sold 14.00 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Gross margin Less operating expenses: Commissions Advertising co-pays Administrative expenses $39.00 Operating income Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 ✓ $ Percent % % % % %
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