Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31 2018.
Prepare an income statement for Gourmet Bones for the year ended December 31 2018.
How does the format of the income statement for Gourmet Bones differ from the income statement of merchandiser?
Gourmet Bones manufactured 17,900 units of its product in 2018, compare the company's unit product cost for the year, rounded to the nearest cent.
Transcribed Image Text:Introduction to Managerial Accounting 895
P16-28A Preparing a schedule of cost of goods manufactured and an income
Learning Objective 3
statement for a manufacturing company
Gourmet Bones manufactures its own brand of pet chew bones. At the end of
December 2018, the accounting records showed the following:
2. Operating income: $23,200
Balances:
Beginning
Ending
Direct Materials
$ 13,500
$ 7,500
Work-in-Process Inventory
3,500
Finished Goods Inventory
5,200
Other information:
Direct materials purchases
$ 36,000
Plant janitorial services
700
Sales salaries
6,000
Delivery costs
1,300
Net sales revenue
107,000
Utilities for plant
1,300
Rent on plant
17,000
Customer service hotline costs
1,200
Direct labor
23,000
Requirements
1. Prepare a schedule of cost of goods manufactured for Gourmet Bones for the
year ended December 31, 2018.
2. Prepare an income statement for Gourmet Bones for the year ended December
31, 2018.
3. How does the format of the income statement for Gourmet Bones differ from the
income statement of a merchandiser?
4. Gourmet Bones manufactured 17,900 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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