Flow of Costs and Income Statement

Technology Accessories Inc. uses job order costing to accumulate costs for the iLeather. Direct materials unit costs for the iLeather are as follows:

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 $20Y3,470,000$

Wholesale price per unit

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 iLeathers waiting to be assembled on December $31,20Y3.$

In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar.

Required:

Prepare an annual income statement for the iLeather product.

Technology Accessories Inc.

Income Statement

For the Year Ended December $31,20$ Y $3$

Total Selling Expenses