Chapter 2, Problem 16E

Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for $52 each. The actual unit cost is as follows:

The selling expenses consisted of a commission of $1.30 per unit sold and advertising copayments totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $132,600 for 3,400 easels.

Required:

1. 1. Calculate the number and the dollar value of easels in ending finished goods inventory.
2. 2. Prepare a cost of goods sold statement.
3. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.