Below is Sloane Company's income statement for 2018 that was prepared by an inexperienced accountant. Sloane Company Income Statement As of December 31, 2018 Revenues: Sales revenue Acerued rent.... Gain on sale of investment. Deferred revenue. Interest payable... Accumulated depreciation. Total revenue... Less operating expenses: Indirect manufacturing labor costs. Utilities expense.. Direct manufacturing labor costs. Factory equipment..... Direct materials purchased. Insurance expense. Restructuring costs. Rent expense... Selling expenses..... Other factory indirect costs. Dividend paid.... Administrative expenses.. Research and development expense. Interest expense.... Prepaid insurance. Short-term investment. Total operating expenses Net operating loss... a. Seventy five percent (75 % ) of utilities expense and 70% of insurance expense are for factory operations. Allocate the remaining utilities and insurance expenses equally to selling expenses and administrative expenses. $290,550 4,000 2,700 2,000 1,500 20,000 320,750 7,200 9,200 42,000 50,000 95,000 2,500 4,550 27,000 38,000 4,000 1,500 34,400 5,000 1,200 4,000 8,000 333,550 (S12,800) b. Eighty percent (80%) of the rent expense is associated with factory operations. Allocate the remaining rent equally to selling expenses and administrative expenses c. Factory equipment was purchased January 1, 2017. It was estimated that the useful life of this equipment is 5 years and the residual value $5,000. The $20,000 accumulated depreciation above is for 2017. No depreciation was charged for 2018. The company uses the double-declining balance method of depreciation. Inventory balances are December 31, 2018 $7,000 $12,000 $30,000 January 1,2018 $4,600 $9,000 $24,000 Direct materials Work-in-process Finished goods The company's tax rate is 21%. e president is disappointed with the results of operations and has asked you to review the income statement and make a ommendation as to whether the company should look for a buyer for its assets. Required: 1. As one step in gathering data for the president, peepare a corrected schedule of cost of goods manufactured for the year ended NG December 31, 2018. 2. As a second step, prepare a multiple-step income statement for the year ended December 31, 2018 3,Calculate the cost of producing one unit if the company produced 110.000 units in 2018 (round your answer to two decimal VE points). its tin INSTRUCTIONS A. This assignment must be completed in Excel. Handwritten work or late assignments will not be accepted. Un B. Grading of this project will be based on: 1. Aceuracy of your schedule of cost of goods manufactured and income statement Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and inrome aes statement. NOTE: a) Do not use 00 after each number, or color your work b) Do not use excessive S signs on your statements. e) This Project is due Thursday June 20, 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 ve the due date. ve on c 2
