Preparing cost of goods manufactured schedule and income statement for a manufacturing company
Craig's Pets succeeded so well that Craig decided to manufacture his own brand of chewing bone-Organic Bones. At the end of December 2012, his accounting records showed the following:
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Inventories:
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Beginning
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Ending
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Materials
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$ 13,200
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$ 7,000
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Work in process
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0
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4,000
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Finished goods
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0
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5,800
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Other information:
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Direct material purchases
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$ 31,000
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Utilities for plant
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$ 1,900
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Plant janitorial services
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200
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Rent on plant
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11,000
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Sales salaries expense
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5,400
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Customer service hotline expense
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1,200
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Delivery expense
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1,400
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Direct labor
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23,000
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Sales revenue
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110,000
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Requirements
1. Prepare a schedule of cost of goods manufactured for Organic Bones for the year ended December 31, 2012.
2. Prepare an income statement for Organic Bones for the year ended December 31, 2012.
3. How does the format of the income statement for Organic Bones differ from the income statement of a merchandiser?
4. Organic Bones manufactured 15,400 units of its product in 2012. Compute the company's unit product cost for the year.