Picture Perfect succeeded so well that Lindsey Owens decided to manufacture her own special brand of picture frames, to be called Always. At the end of December 2009, her accounting records showed the following:

Requirements 

1. Prepare a schedule of cost of goods manufactured for Always Manufacturing, for the year ended December 31, 2009.

2. Prepare an income statement for Always Manufacturing, for the year ended December 31, 2009.

3. How does the format of the income statement for Always Manufacturing differ from the income statement of Picture Perfect?

4. Always Manufacturing made 1,300 picture frames in 2009. Compute the company's unit product cost for the year. 

Transcribed Image Text:

Inventories: Materials Work in process Finished goods Other information: Beginning $ 13,000 0 0 Ending $ 8,000 2,000 3,000 Direct material purchases $ 32,000 Rent on plant $11,000 Plant janitorial services 750 Customer warranty refunds 1,500 Sales commissions 4,000 Depreciation expense on Administrative expenses 7,000 delivery truck 2,500 Sales revenue 128,000 Depreciation expense on plant equipment 3,250 Utilities for plant 1,000 Direct labor 20,000