Amount Descriptions Income Statement cructions ocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released duction in early 2048. In January, the company spent $605,000 to develop a late-night advertising infomercial for the new product. During 2048, the company spent $1,414,00 wertising the product through these infomercials. In addition, the company incurred $784,000 in legal costs. The knives were ready for manufacture on January 1, 20Y8. mocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is as follows: $3.85 Hardened steel blanks (used for knife shaft and blade) Wood (for handle) 1.45 Packaging 0.50 The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single plece of metal that Includes both the blade and the shaft. The stamping machine requires one hour per 250 knives. After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife in a decorative box. The direct lab! cost is $0.45 per unit The knives are sold to stores. Each store is given promotional materials such as posters and aisle displays. Promotional materials cost 558 per store. In addition, shipping costs average $0.20 per knife. Total completed production was 1,200,000 units during the year. Other information is as follows: Number of customers (stores) Number of knives sold Wholesale price (to store) per knite 59,000 1,128,000 516 Previ Check My Work 2 more Check My Work uses remaining, After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shalt and packs the knife in a decorative box. The direct labor cost is $0.45 per unit The knives are sold to stores. Each store is given promotional materials such as posters and alsle displays. Promotional materials cost $58 per store. In addition, shipping costs average 50.20 per knife. Total completed production was 1,200,000 units during the year. Other information is as follows: 59,000 Number of customers (stores) Number of knives sold Wholesale price (to store) per knife 1,128,000 516 Factory overhead cost is applied to jobs at the rate of $675 per stamping machine hour after the knife blanks are stamped. There were an additional 20.000 stamped knives, handles, and cases waiting to be assembled on December 31, 2048 Required: 1. Prepare an annual income statement for the kitchen Ninja knife series, including supporting calculations, from the information provided Refer to the list of Amount Descriptions for exact wording of the answer choices for fext entries. Be sure to complete the statement heading 2. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2018 in your computations, if required, round interim per unit costs to two decimal places Pre Check My Work 2 more Check My Work uses remaining Save and Exit Submit Assignmer nument Score: 40% Type here to search