C&N Inc. manufactures luxury dog beds. They began the current year with no inventory. During the year, they incurred the following costs:

$134,200 manufacturing costs $ 27,000 selling and administrative costs

They produced 6,100 luxury dog beds. They sold 3,400 of the luxury dog beds for $87 each.

Answer each of the following questions at the top of the answer box like this: 1. answer 2. answer, etc, After typing all 5 of your answers, please show and label all of your work below answer #5. (All of the work comes after you list all of the answers so that I can clearly see your final answers at the top.)

1. What is the average product cost of one luxury dog bed made during the current year? 2. What will C&N report as cost of goods sold on the income statement? 3. What will C&N report as gross margin on the income statement? 4. What will C&N report as net income on the income statement? 5. What will C&N report as inventory on the balance sheet as of the end of the current year?