Flow of Costs and Income Statement

campaign for Cyclone Panic and $$856,000$ in legal costs. The $CD$ production began on April $1,20$Y$8.$

R$-$Tunes uses a job order cost system to accumulate costs associated with a CD title. The unit direct materials cost for the $CD$ is:

Blank CD $$1\mathrm{.}80$

Case $,0\mathrm{.}60$

Song lyric insert $,0\mathrm{.}60$

After the CDs are copied, they are brought to an assembly area where an employee packs the $CD$ with a case and song lyric insert. The direct labor cost is $$0\mathrm{.}25$ per $CD.$

Total completed production was $713,000$ units during the year. Other information is as follows:

Number of customers $($record stores$)$

Number of CDs sold $,606,100$

Wholesale price $($to record store$)$ per CD $$16$

Instructions:

R$-$Tunes Inc.

Cyclone Panic CD

Income Statement

For the Year Ended December $31,20$ Y$8$

Selling expenses:Instructions:

Prepare an annual income statement for the Cyclone Panic $CD,$ including supporting calculations, from the information above. Round unit costs to the nearest cent, if rounding is required.

R$-$Tunes Inc.

Cyclone Panic CD

Income Statement

For the Year Ended December $31,20$ Y$8$

Selling expenses:

Total selling expenses

Administrative expenses:

Total operating expenses

Income from operations

Manufacturing cost per unit $($CD$)$:

Direct materials:

Total direct materials

$$

Total manufacturing cost per $CD$

Finished Goods balance, December $31,20$ Y$8$

$

Work in Process balance, December $31,20Y8$