Flow of Costs and Income Statement Technology Accessories Inc. is a designes, manufacturer, and distributor of accessories for consumer electronic products. Early in 2012, 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 fits smugly around most tablet computers. In January, $768,000 was spent on developing markating and advertising materials. For the first six months of 2013, the company spent an additional $1,400.000 promoting the Leather. The product was ready for manufacture on January 21, 2013. Technology Accessories Inc. uses a job order cast system to accumulate costs for the Leather Direct materials unit costs for the leather are as followe Leather Velvet Packaging Total $10.00 5.00 0.40 $15.40 The actual production process for the leather is fairly straightforward. First, leather is 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 affix the velvet interior and pack the Leather for shipping. The direct labor cost for this work $0.30 The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales. Total completed production was 510.000 units during the year Other information is as follow Number of leather units sold in 2013 470,000 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 22.000 out and stitched Leathers sting to 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 The actual production process for the Leather is fairly straightforwant. First, leather is brought to a cutting and stitching machine. The machine cuts the leather The mechine requires one hour per 130 ther After the Leather is cut and steched, it is brought to assembly, where assembly personnel affix the velvet interior a edge into the product. I pack the leather for shipping. The direct labor cost for this work is $0.50 per un The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for Total completed aroduction was 510,000 units during the year Other information is as follows Number of Leather units sold in 2013 Wholesale price per unit 470.000 $40 Factory overhead cost is applied to jobs at the rate of $1,300 per machine hour. There were an additional 22.000 cut and stitched iLeathers waiting to 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. Sales Technology Accessories Inc. Income Statement For the Year Ended December 31, 2013 Cost of Goods Sold A Gross Profit - Saling Expense Salespersons Commissions Advertising Design < In your computations, in required, round Required: per 1. Prepare an annual income statement for the iLeather product. Sales Technology Accessories Inc. Income Statement For the Year Ended December 31, 20Y3 Cost of Goods Sold Gross Profit Selling Expenses: Salespersons Commissions Advertising Design Advertising Expenses Total Selling Expenses Operating income Feedback Check My Work 1. a. Calculate the sales revenue. b. Calculate the manufacturing cost per unit (direct and indirect costs). c. Assign all the manufacturing costs per unit to the number of units sold. Check My Work Flow of Costs and Income Statement Technology Accessones Inc. is a designet manufactures and distributor of accessories for consumer electronic products. Early in 2013, 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 fits snugly around most tablet computers. In January $768.000 was spent on developing marketing and advertising materials. For the first six months of 2013, the company spent an additional $1.400.000 promoting the iLeathen The product was ready for manufacture on January 21, 2013. Technology Accessories Inc. vees a job-order cost system to accumulate costs for the Leather Direct materials unit costs for the iLeather are as follows Leather Velvet Packaging Total $10.00 5.00 0.40 $15.40 The actual production process for the Leather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an extener edge into the product. The machine requires one hour per 130 Leathers After the Leather cut and stitched, it is brought to assembly, where assembly personnel affix the valvet interior and pack the Leather for shipping. The direct labor cost for this work is $0.50 per unit. The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the siholesale price for all sales Total completed production was 310.000 units during the year Other information is as follo Number of Leather units sold in 2013 470.000 Wholesale price per unit 540 Factory overhead cost is applied to jobs at the rate bf $1.300 per machine hour. There are an additional 22.000 cut and stitched Leathers waiting to be assembled on December 21, 2012 In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar. Requirad Packaging Total 0.40 $15.40 The actual production process for the iLeather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an eiderior edge into the product. The machine requires one hour per 130 Leathers. After the iLeather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the Leather for shipping. The direct labor cost for this work is $0.50 per unit. The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales. Total completed production was 510.000 units during the year. Other information is as follows Number of iLeather units sold in 2013 470.000 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 22,000 cut and stitched Leathers waiting to 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. 1 Required: 1. Prepars an annual income statement for the iLeather product. Sales Technology Accessories Inc. Income Statement For the Year Ended December 31, 2013 Cost of Goods Sold Gross Profit Saling Expenses < eBook Sales Technology Accessories Inc. Income Statement For the Year Ended December 31, 2013 Cost of Goods Sold Gross Profit Selling Expenses: Salespersons Commissions Advertising Design Advertising Expenses Total Selling Expenses Operating income DO Feedback Check My Work 1. a. Calculate the sales revenue. b. Calculate the manufacturing cost per unit (direct and indirect costs). c. Assign all the manufacturing costs per unit to the number of units sold 2. Determine the balances in the finished goods and work in process inventorie Finished Goods 5 S Work in Process Check My Work All w