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, 5766,000 was spent on developing marketing and advertising materials. For the first six months of 2013, the company spent an additional $1,409,000 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 materials 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 affic 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 500,000 units during the year. Other information is as follows: Number of Leather units sold in 2013 460,000 Wholesale price per unit $40 Factory overhead cost is applied to jobs at the rate of $1,250 per machine hour. There were an additional 20,000 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 Required: Check My Work