Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the Leather. The cover is made of stitched leather with a velvet interior and its snugly around most tablet computers. In January, 5779,000 was spent on developing marketing and advertising materials. For the first six months of 2043, the company spent an paditional $1,409,000 promoting the Leather. The product was ready for manufacture on January 21, 20Y3. Technology Accessories Inc. uses a job order cont system to accumulate costs for the Leather Direct materials unit costs for the Leather are as follows: Leather $10.00 Velvet 5.00 0.40 Packaging Total 515.40 The actual production process for the Leather is fairly straightforward. First, leather le brought to a cutting and stitching machine. The machine cuts the leather and stitches an exterior edge into the product. The machine requires one hour per 130 Leathers After the Leather is cut and stitched, it is brought to assembly, where assembly personnel of the Velvet interior and pack the Leather for shipping. The direct abor cost for this work is $0.50 per unit The completed packages are then told to retail outlets through a salesforce. The sales force is compensated by o 20.commission on the wholesale price for all Total completed production was 540,000 units during the year Other information is an follow Number of iconther units sold in 2013 500,000 Wholesale price per unit $40 Factory overhead cost is applied to Jobs at the rate of $1,300 per machine hour. There were an additional 20,000 cut and stitched Leathers waiting co be Assembled on December 31, 2013 in your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar, Required: 1. Prepare an annual income statement for the Leather product. Technology Accessories Inc. Income Statement For the Year Ended December 31, 2043 Selling Expenses Total Selling Expenses 2. Determine the balances in the finished goods and work in process inventories for the Leather product on December 31, 2013 Finished Goods Work in Process