Interpreting financial data Following is the 1992 income statement of Svensen, Incorpo- rated. Svensen is a manufacturing company that makes and sells a single product. During 1992 the company manufactured 98,000 units and sold 100,000 units. Beginning Work in Process inventory on January 1,1992 was $59,000 and Work in Process inventory on December 31,1992 was $66,400.

REQUIRED

a. Compute the change in finished goods inventory from the beginning to the end of the accounting period.

b. Compute the total manufacturing costs incurred during the period.

c. Compute the cost per unit of sales salaries and commissions.

d. What was the product expense as a percentage of total expenses for 1992?

e. Compute the average unit cost of goods manufactured during the period.

f. Compute the average unit cost of goods sold during 1992.

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SVENSEN, INCORPORATED Income Statement For The Year Ended December 31, 1992 Sales..... Less cost of goods sold: Beginning finished goods inventory, 1/1/92 Add cost of goods manufactured in 1992 Total goods available for sale....... Less ending finished goods inventory, 12/31/92. Cost of goods sold.... Gross margin.... Less operating expenses: Sales salaries and commissions Administrative salaries .... Depreciation of office buildings and equipment Insurance....... Property taxes Office supplies Utilities Total operating expenses Net income $ 56,000 345,000 $401,000 $660,000 48,000 353,000 $307,000 $ 88,000 73,000 44,000 5,500 7,000 4,500 7,000 229,000 $ 78,000