1- As one step in gathering data for the president, prepare a revised schedule of cost of goods manufactored for the year ended December 31, 2021.
2- **Also, calculate the cost of producing one unit if the company procuded 40,000 units in 2021**(round your answer to two decimal points)
3- As a second step, prepare a corrected multiple step income statement for the year 2021.
Below is financial information for Colonial Company. (The Company) for the year ended December 31, 2021 prepared by its inexperienced accountant. Colonial Company. Income Statement at December 31, 2021 Revenues: Sales revenue $298,000 Allowance for uncollectible accounts 800 Interest revenue.. 500 Dividend payable. 2,200 Gain on sale of investment 1,500 Total revenues. 303,000 Less: Cost of goods manufactured... 228,000 Gross profit. 74,200 Operating expenses: Selling expenses 42,000 Restructuring costs... 3,000 General and administrative expenses. 34,000 Short-term investments.... 5,000 Prepaid advertising 800 Interest expense....... 1,400 Total operating expenses _86,200 Net loss $(12,000) Colonial Company. Schedule of Cost of Goods Manufactured at December 31, 2021 Direct materials purchased.. $98,000 Direct manufacturing labor... 45,000 Manufacturing overhead: Indirect materials.. $2,000 Indirect manufacturing labor costs, 7,000 Research and development expense 5,000 Factory rent 24,000 Factory insurance 3,000 Factory equipment.. 46,000 Accumulated depreciation. (9,200) Factory utilities 6,000 Prepaid factory insurance 1.000 Factory bonus payable (3.000) Other indirect manufacturing costs. 4,000 Total manufacturing overhead.. 85,800 Cost of goods manufactured... S228,800 The accountant did not take the following items into consideration when preparing the statements above. a. Factory equipment was purchased on January 1, 2020 and has a useful life of 10 years with $2,000 salvage (residual) value. The company uses the double declining-balance method of depreciation. b. Inventory balances for 2021 are: January 1, 2021 December 31, 2021 Direct materials... $6,000 $7,000 Work-in-process $8,000 $10.000 Finished goods $25,000 $28,000 c. The company's tax rate is 21%. The company's president is disappointed with the results of operations and has hired your accounting firm to review the financial statements. Required: 1. As one step in gathering data for the president, prepare a revised schedule of cost of goods manufactured for the year ended December 31, 2021. Also, calculate the cost of producing one unit if the company produced 40,000 units in 2021 (round your answer to two decimal points). 2. As a second step, prepare a corrected multiple-step income statement for the year 2021
