flow of costs and income statement ginocera
Flow of costs and Income Statement Chinocera Inc. is a designer, manufacturer and distributor of custom gourment Kitchen knives. A new Kitchen Knife series called the kitchen i was released for production in early 20s. In uwy, the company spent $600,000 to develop a late night advertising infomercial for the new product. During 20Y8, the company spent an additional 1,400,000 promoting the product through these womercials, and 800,000 in legat The were ready for manufacture on January 1, 2018 Ginocer uses a yeb order cost system to accumulate costs associated with the Kitchen Minja Knife. The unit direct materials cout for the new Hardened steel blankes used for knife shalt and blode) 14.00 Wood for handie) 1.50 Packaging 0.50 The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stumped into a single place of metal that includes both the blade and the share. The stamping machine requires one hour per 250knives 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 into a decorative box. The direct labor cost is $0.50 per unit The knives are sold to stores. Each store is given promotional materials, such as posters and aske displays, Promotional materials cost 60 per ore. In addition, shipping costs average 10.20 per knife. Total completed production was 1,200,000 units during the year. Other information is as follows Number of customers (stores) 60,000 Number of knives sold 2,120,000 Wholesale price (to store) per knife $16 Factory overhead cost is applied to jobs at the rate of $800 per stamping machine hour after the knite blanks are stamped. There were an additional 25,000 stand nives, handies, and cases in process and waiting to be assembled on December 31, 2018 In your computations, if required, round interim per unit costs to two decimal places Required: 1. Prepare an annual income statement for the Kitchen Ninjanie series. Ginocera Inc. Income Statement For the Year Ended December 31, 2048 Sales Cost of goods sold Gross profit Seong and administrative expenses Selling expenses Infomercial campaign In your computations. It required, round interim per unit costs to two decimal places Required: 1. Prepare an annual income statement for the kitchen Ninjanie series Ginocera Inc. Income Statement For the Year Ended December 31, 20Y8 Sales Cost of goods wald Gross profit Selling and administrative expenses Sating expenses Infomercial campaign Promotional materiale Shipping expenses Tot seg Legal events Toate and stative expenses Operating income Calculate the sales revenue b. Calculate the manufacturing cost per unit (direct and direct costs Align tre manufacturing cents perust to the number of units sold d. Ang at the promotional cost to the stores 2. Determine the balances in the work in process and fished goods inventaries for the Kitchen ninja ante series on December 31, 2011 Go tafumardal campaign Prometna materials Shoping expen Total selling expenses Administrative penses Legal expenses Toeling and administrative expenses Operating Income 1. Calculate the sales revenue b. Calculate the manufacturing cost per unit (direct and indirect costs c. Aign all the manufacturing costs per unit to the number of units sold d. Assign all the promotional costs to the stores 2. Determine the balances in the work in process and finished goods inventories for the Kitchen Nina knife series on December 31, 2018 hed Goods Work in Process 2. Assign the manufacturing costs per un to the number of units in the fished goods inventory. Assige only manufacturing costs incurred per unit to the units in the work process inventory TOM
