Solved by verified expert :Fido Treats manufactures its own brand of pet chew bones. At
the end of December 2014, the accounting records showed the following:
Inventories: Beginning
Ending
Raw Materials $
13,400 $ 9,500
Work -in-Process 0 2,000
Finished Goods
0
5,300
Other Information:
Raw materials purchase $ 33,000
Plant janitorial
services 800
Sales Salaries 5,000
Delivery Costs
1,700
Sales revenue 109,000
Utilities for plant 1,600
Rent on plant 13,000
Customer service
hotline costs 1,400
Direct Labor 22,000
_ _ _
Requirements:
1.
Prepare a schedule of costs of goods
manufactured for Fido Treats for the year ended December 31, 2014.
2.
Prepare an income statement for Fido Treats for
the year ended December 31, 2014.
3.
How does the format of the income statement for
Fido Treats differ from the income statement of a merchandiser?
4.
Fido Treats manufactured 18,075 units of its
product in 2014. Compute the company’s unit product cost for the year.
