Flow of Costs and Income Statement Technology Accessories Inc. is a designer, manufacturer, 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 $757,000 was spent on developing marketing and advertising materials. For the first six months of 2013, the company spent an additional $1,402.000 promoting the leather. The product was ready for manufacture on January 21, 2013 Technology Accessories Inc. uses a job order cost system to accumulate costs for the Leather Direct materiais unit costs for the leather are as follows: Leather $10.00 Velvet 5.00 Packaging 0.40 Total $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 125 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 is $0.50 per unit. The completed packages are then sold to retail outlets through a tales force. The sales force is compensated by 20% commission on the wholesale price for all sales. information is as follows: BOOK Pri tem Total completed production was 540,000 units in the year Other informations as to Number of esther units sold in 2013 500.000 Wholesale price per unit 340 Factory overhead coat is applied to jobs at the rate of $1.250 per machine hour. There were an additional 22,000 cutana sched 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. 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 Total Selling Expenses OL and Religion Locatori 1. Prepare an annual income statement for the Leather product. Technology Accessories Inc Income Statement For the Year Ended December 31, 2013 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, 2010, Finished Goods Work in Process Previous Next)