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Flow of Costs and Income Statement Accounts, Labels and Amount Descriptions Income Statement Instructions Ginocera Inc. is a designer, manufacturer, and distributor of low -
Flow of Costs and Income Statement Accounts, Labels and Amount Descriptions Income Statement Instructions Ginocera Inc. is a designer, manufacturer, and distributor of lowcost highquality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early In January, the company spent $ to develop a latenight advertising infomercial for the new product. During the company spent $ advertising the product through these infomercials. In addition, the company incurred $ in legal costs. The knives were ready for manufacture on January Y Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is as follows: Hardened steel blanks used for knife shaft and blade $ Wood for handle Packaging The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per knives. After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife in a decorative box. The direct labor cost is $ per unit. The knives are sold to stores. Each store is given promotional materials such as posters and aisle displays. Promotional materials cost $ per store. In addition, shipping costs average $ per knife. Total completed production was units during the year. Other information is as follows: Number of customersstores Number of knives sold Wholesale priceto store per knife $ Factory overhead cost is applied to jobs at the rate of $ per stampi by machine hour after the knife blanks are stamped. There were an additional stamped knives, handles, and cases waiting to be assembled on Decemeber Y Prepare an annual incoke statement for Kitchen Ninja knife series, including supporting calculations, from the information provided. Be sure to complete the statement heading. determing the balances in the work in process and finished goods inventories for the akitchen Ninja Knife series on December Y
Flow of Costs and Income Statement
Accounts, Labels and Amount Descriptions
Income Statement
Instructions
Ginocera Inc. is a designer, manufacturer, and distributor of lowcost highquality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early In January, the company spent $ to develop a latenight advertising infomercial for the new product. During the company spent $ advertising the product through these infomercials. In addition, the company incurred $ in legal costs. The knives were ready for manufacture on January Y
Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is as follows:
Hardened steel blanks
used for knife shaft and blade $
Wood for handle
Packaging
The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per knives.
After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife in a decorative box. The direct labor cost is $ per unit.
The knives are sold to stores. Each store is given promotional materials such as posters and aisle displays. Promotional materials cost $ per store. In addition, shipping costs average $ per knife.
Total completed production was units during the year.
Other information is as follows:
Number of customersstores
Number of knives sold
Wholesale priceto store per knife $
Factory overhead cost is applied to jobs at the rate of $ per stampi by machine hour after the knife blanks are stamped. There were an additional stamped knives, handles, and cases waiting to be assembled on Decemeber Y
Prepare an annual incoke statement for Kitchen Ninja knife series, including supporting calculations, from the information provided. Be sure to complete the statement heading.
determing the balances in the work in process and finished goods inventories for the akitchen Ninja Knife series on December Y
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