Flow of Costs and Income Statement Ginocera Inc. is a designer manufacturer and distributor of low-cost high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen ins was released for production in early 208. In January, the company spent $242.100 to develop a late night advertising infomercial for the new product. During 2018, the company spent 1564,900 advertising the product through these Infomercials. In addition, the company incurred 5242,000 in legal costs. The Knives were ready for manufacture on January 1, 2018 Ginocara uses a job order cost system to accumulate cants associated with the kitchen knife. The unit direct materials cast for the knife is a follows: Hardened steel blanks (used for knife $1.40 shaft and blade) Wood (for handle) 0.50 Packaging 0.50 The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier are stamped into a single place of metal that includes both the blade and the shaft. The stamping machine requires one hour per 660 knives > After the knife shafts are stamped, they are brought to an assembly area whare an employee attaches the handle to the shaft and packs the knite in decorative box. The direct labor cost is $0.20 per unit. The knives are sold to stores. Each stone is given promotional materials such as posters and sise displays. Promotional materials cost $30 per store. In addition, shining Contra 50.2 per knife. Total completed production was 269,000 units during the year. Other information is as follows: Number of customers (stores) 11,400 Number of knives sold 228,700 Wholesale price (to store) per knife $12 Factory overhead cost is applied to jobs at the rate of 5330 per stamping machine hour after the knife blanks are stamped. There were an additional 62 250 stamped and Pandora Translate myCourtes Blue R. Cengage M WebMail Google Docs S Bodybuilding.com Home Blue Ridge BRIT Chapter 19 Homework 2 Book Printem WHO price roroj per nie 11 Factory overhead cost is applied to jobs at the rate of $330 per stamping machine hour after the knife blanks are stamped. There were an additional 67,250 stamped knives, handles and cases waiting to be assembled on December 31, 2015 In your computations, it required, round interim per unit costs to two decinal places. Required: 1. Prepare an annual income statement for the Kitchen Nina knite series, Ginocera Inc Income Statement For the Year Ended December 31, 2018 DI seling expenses Total seling expenses Administrative expenses DO Total operating expenses omogom Homes Ginocera Inc. Income Statement For the Year Ended December 31, 2048 Selling expenses Total selling expenses Administrative expensest > 00 Total operating expenses Income from operations 2. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2018 Finished Goods Work In Process
