Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of 150,000 cameras were made, and 154,000 were sold for $8.00 each.

The actual unit cost per camera is as follows:

The selling expenses consisted of a commission of $0.25 per unit sold and advertising co-payments totaling $36,000. Administrative expenses, all fixed, equaled $83,000.
There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $30,600 for 6,000 cameras.

Required:

1. Calculate the number of cameras and the value of ending finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement.

Transcribed Image Text:

Direct materials $2.25 Direct labor 1.50 Variable overhead 0.65 Fixed overhead 0.70 Total unit cost $5.10