by its inexperienced accountant. Uncle Sam's Fashion Inc. Income Statement ar December 31, 2018 5300,600 500 700 1.000 200 303,100 238.000 65.100 Revenues: Sales revenue. Wages payable... Dividend revenue..... Allowance for Uncollectible accounts Deferred revenue... Total revenues.... Less: Cost of goods manufactured. Gross profit ..... . Operating expenses: Selling *** ******* Restructuring costs........ Administrative Available-for-sale investments.. Prepaid advertising. Dividend paid..... Interest expense......... Total operating expenses ..... Net loss...... 38.000 5.000 25.000 5,000 2,000 600 1.400 77.000 S411.900) 4,000 Uncle Sam's Fashion Inc. Schedule of Cost of Goods Manufactured at December 31, 2018 Direct materials purchased............ ..... 596,000 Direct manufacturing labor.. .. 47,000 Manufacturing overhead: Indirect manufacturing labor costs........... $18,400 Research and development expense..... 3,500 Indirect materials..... Loss on sale of investments. 600 Factory rent ....... 12,000 Factory insurance ............ 4.800 Factory equipment.......... 49,000 Factory utilities 4,200 Prepaid advertising expense.. 2,500 Factory wages payable ... (6.000) Other indirect manufacturing costs..... 2.000 Total manufacturing overhead.. 95.000 Cost of goods manufactured.......... $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 10 years with $3,200 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 Direct materials..... $5,400 $6,300 Finished goods .... 23,200 29,500 Work-in-process.. 7,250 11,100 The company's tax rate is 21%. ancial statements. ny president is disappointed with the results of operations and has hired your accounting firm to review the quired: me step in gathering data for the president, prepare a revised schedule of cost of goods manufactured for the period ended December 31, 2018 As a second step. prepare a corrected multiple-step income statement for the year ended December 31, 2018. - Calculate the cost of producing one unit if the company produced 125,000 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
