Flow of Corts and income Statement Technology Accessories Inc: is a designer, manifacturer, and distributor of accessories for consumer electronic products- Farly in 20 3, the cocngany began production of a leather cover for tablet computers, calied the ileathee. The cover is made of stitched leather with a veluet interior and fits shugh around most tablet computers. In January, 5773,000 was spent on developing marketing and advertising matenats, For the first six months of 20y3, the company spent an addtionat \$1,404,000 promoting the ileather. The product was ready for manufacture on Jancary 21,2013. Technology Accessories inc, uses a lob order cont system to accumulate costs for the ileathen, Divedt materiats unit corts for the ilenther are as folews: The actual production process for the iteather is faily straightforward. First, leather is brought to a curting and stitching machine. The machine cuits the leather and stikches an exterior edge into the product. The machine requires one hour per 120 ileathers. After the ileather is cut and stitched it is brought to assembly, where assembly persennel affix the velvet interiar and pack the iteather for shipping. The direct labor cost for this werk is $0.50 per unit. The completed pockages are then sold to retaid outtets through a sales force. the sales force is combensated by a zow commission on the wholesale grice for al saleh. Total completed production was $40,000 units during the year Other information is as follows: Number of ileather units sold in 2003 soo,000 Wholesale price per-unt 540 Factory overtiead cost is applied to jobs at the rate of 51,200 per machine hour. There were an addional 21,000 cut and stitched iteathers waiting to be assembled on December 31,2013 th your computaqions, if required, round interim per unit costs to two decimal places and final anwwers to the nearest whole dollar: In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar. Required: 1. Prepare an annual income statement for the iteather product. 2. Determine the balances in the finished goods and work in process inventories for the Iteather product on December 31. 20v3. 9 more Check My Work utes remaing