Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flow of costs and Income Statement Technology Accessories Inc. is a designer, manufactures, and distributor of accessories for consumer electronic products Early in 2009, the

image text in transcribed
image text in transcribed
Flow of costs and Income Statement Technology Accessories Inc. is a designer, manufactures, and distributor of accessories for consumer electronic products Early in 2009, the company began production of the wee fotos de trate the code of stitched leather with a velvet interior and fits ugly around most tablet computers. In January, 2.000 was spent on developing marketing and wring materials for the fino, at $1.404.000 promoting the Leather. The product was ready for manufacture on January 21, 2013 Technology Accessories Inc. uses a border coat wstem to accumulate costs for the Leather Direct materials unit costs for the there foto $10.00 Velvet 5.00 Packaging 0.40 Total $15.00 The actual production process for the Leather is fairly straightforward. First, leather is brought to a cutting and thing machine. The machine cuts the father and the materie do te the product. The machine how 120 Leathers After the leather is cut and stitched, it is brought to assembly, where assembly personne afte the velvet interior and pack the Leather for showing the deather cost for this work is 2.50 per und The completed padages are then sold to retail outlets through a salesforce. The salesforce is compared by a 20commision on the whole price for Total completed production was 540,000 units during the year. Other information is as follows: Number of leather units sold in 2073 500.000 Wholesale price per unit Factory overhead cost is applied to jobs at the rate of 1.200 per machine hout. There were anational 22,000 tandhed Leathers waiting to be assembled on December 31, 203, In your computations required, round interim per unit costs to two decimal places and final rowers to the neareste duter Required: 1. Prepare an annual income statement for the Leather product Technology Accessories Inc Income Statement For the Year Ended December 31, 2013 Selling Expenses Required: 1. Prepare an annual income statement for the other product Technology Accessories Inc. Income Statement For the Year Ended December 31, 2013 Selling Expenses 21 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: John Burns, Martin Quinn, Liz Warren, João Oliveira

1st Edition

0077121619, 978-0077121617

More Books

Students also viewed these Accounting questions

Question

Explain how A(a, b) and B(b, a) may be in different quadrants.

Answered: 1 week ago