Below is financial information for Universal Fashion Inc. (The Company) for the year ended December 31. 2018 prepared by its inexperienced accountant. Universal Fashion Inc Income Statement at December 31, 2018 Revenues Sales revenue Royalty revenue... Unearned revenue... $300,000 700 500 600 300 Gain on sale of investment.. Total revenues. 303,100 Gross profit Operating expenses: 65,100 Selling.... General and administrative Short-term investments. Restructuring costs.. Prepaid office rent Dividend paid. Interest expense.... 36,000 28,000 5,000 .4,000 1,400 Total operating expenses Universal Fashion Inc. Schedule of Cost of Goods Manufactured at December 31, 2018 Direct materials purchased. Direct manufacturing labor Manufacturing overhead Indirect materials Indirect manufacturing labor costs Research and development expense Factory rent. Factory insurance Factory equipment Factory utilitis. Prepaid advertising expense... Factory bonus payable . Other indirect manufacturing costs.... $98,000 45,000 $2,000 7,000 5,000 24,000 3,000 46,000 ...6,000 1,000 (3,000) 4,000 Total manufacturing overhead.... factured.... $238,000 The accountant did not take the following items into consideration when preparing the statements above. a. Factory equipment was purchased October 1, 2018 and has a useful life of 5 years with $2,080 salvage (residual) value. The company uses the double-declining-balance method of depreciation b. Inventory balances for 2018 are: January 1.2018 December 31.2018 $7,000 10,000 28,000 8,000 Finished goods25,000 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 period ended December 31, 2018. 2. As a second step, prepare a corrected multiple-step income statement for the year ended December 31, 2018. 3. Calculate the cost of producing one unit if the comipany produced 120,000 units in 2018 (round your answer to two decimal points). INSTRUCTIONS: A. This assignment must be completed in Excel. Handwritten work or late assignments will not be accepted. B. Grading of this project will be based on: 1. Accuracy of your schedule of cost of goods manufactured and income statement 2. Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and income statement. NOTE: a) Do not use .00 after each number, or color your work. b) Do not use excessive $ signs on your statements. c) This Project is due Tuesday April 23, 2019. Attach printed copies of your schedule of cost of goods manufactured and income statement to this project sheet and give it to me on or before the due date. Also, email me your Excel schedule of cost of goods manufactured and income statement on or before the due date
