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- Ninja was released for production in early 20 . 8 . In January, the company 5pent \$855, 600 to develop a late-night advertising infomercial for the new product. During 20Y8, the company spent $1,996,400 advertising the product through these infomerdals. In addition, the company incurred $856,000 in legal costs. The knives were ready for manufacture on January 1, 20 . 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 followst The production process is straightforward. First, the hardened steal 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 1,740 knives. After the knife shafts are stamped, they are brooght 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 50.25 per unit. The knives are sold to stores. Each store is given promotional materials such as posters and alsle displays. Promotional materials cost $40 per store. In addition, shipping costs average $0.25 per knife. Total completed production. was 713,000 units during the year. Other information is as follows: Number of customers (stores) 30,300 addition, shipping costs average $0.25 per knife. Total completed production was 713,000 units during the year. Other information is as follows: Factory overhead cost is applied to jobs at the rate of $870 per stamping machine hour after the knife blanks are stamped. There were an additional 178,250 stamped knives, handles, and cases waiting to be assembled on December 31, 20Y8: In your computations, if required, round interim per unit costs to two decimal places. 1. Prepare an annual income statement for the Kitchen Ninja knife series. 2. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31,20 . 8