Consider the following data for a manufacturer

beginning of the year: direct materials inventory: $20000, work in process inventory: $42000, finished goods inventory: $22000, purchases of direct materials: unknown, direct labor: unknown, manufacturing overhead: unknown

End of year: direct materials inventory: $33000, work in process inventory: $29000, finished goods inventory: $25000, purchases of direct materials: $70000, direct labor: $82000, manufacturing overhead: $40000

1) compute the cost of goods manufactured and cost of goods sold

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Problem 2

Charlies pets succeeded so well that Charlie decided to manufacture his own brand of chewing bone- Gourmet bones. At the end of December 2012, his accounting records showed the following:

Beginning Inventories: materials $13400, work in process 0, finished goods 0

Ending inventories: materials $9000, work in process $1,500, finished goods $ 5700

other information: direct material purchases $32000, plant janitorial services $800, sales salaries expense $5400, Delivery expense $1300, sales revenue $109000, utilities for plant $1200, rent on plant $14000, customer service hotline expense $1800, direct labor $22000

1) prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31, 2012.

2) Prepare an income statement for Gourmet Bones for the year ended December 31, 2012.

3) How does the format of the income statement for Gourmet Bones differ from the income statement of a merchandiser?

4) Gourmet Bones manufactured 17100 units of its product in 2012. Compute the company's unit product cost for the year.