Font Paragraph NIOS, LEUKELEN Premium Watches, Inc. produces and sells children's smartwatches. The company started the year 2019 with 1,500 watches and produced an additional 75,132 watches. The income statement below was prepared hy the com i nentenced accountant Premium Watches Inc Income Statement As at December 31, 2019 Sales revenue (67,500 watches....................... $269,500 Uneamedrent revenue ........ .... 4,000 Gain on sale of investment........ 1,200 Royalty revenue 500 Interest payable.... I 1.500 Total revenue .................. $276,700 Less operating expenses: Indirect manufacturing labor cost 7,200 Utilities..... .. 9,200 Direct manufacturing labor cost 47,000 Factory equipment 50,000 Direct materials purchased 95.000 Insurance expense...... .... 2,500 Rent expense. ............ 27,000 Interest expense............. . 300 Selling expenses....... ............ 34,700 Administrative expenses. ----.. ............. 30,900 Research and development expense.............................. 5,000 Prepaid insurance expenses........................................ 4,000 Short-term investment............................................. 8,000 Dividend paid Restructuring costs. .............. ... ... .... ........ 0,000 Total operating expenses............................... ... 327,300 Net operating loss... ........................ ($50.600) a Sixty five percent (65%) of utilities and 70% of insurance expense relates to factory operations. Add the remaining amounts equally to selling expenses and administrative expenses b Ninety percent (90%) of rent expense is associated with factory operations. Add the remaining 10% equally to selling expenses and administrative expenses. c. Factory equipment is estimated to have a useful life of 5 years with a $5,000 salvage value remaining the end ofits useful life. The company uses the double-declining b dance method of depreciation d Inventory balances at the beginning and ending of the period were: January 2012 December 31, 2019 Direct materials................ $4,600 $7,000 Work-in-process........... $9,000 Finished goods ................ $3,750 There amounts were not taken into account when the statements were prepared $12,000 8 English (United States o search o e atibility Mode] - Word CD AaBbc AaBb C Aa Bbcel AaB Cel AaBbCel AaBbel ABDOC ABC ABAC Aalbo title Title TNo Spac. Subtle Em... Intense E. Quote Intense Q.. Subtle Rel. Intense Re... Book Title Titus Styles Ed e The company's tax rate is 21% The president is disappointed with the resultafor s endhas asked you to the income statement and make a recommendations to whether the y should look foraster f asts Required: 1. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2019. Also, calculate the cost of producing one watch 2. Prepare a corrected multiple step income statement for the year ended December 31, 2019 INSTRUCTIONS: A. This assignment must be completed in Exce. Handwritten work or late assignments will not be accepted B. Grading of this project will be based on: 1. Accuracy of your schedule of cost of goods manufactured and income statement 2. Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and income statement. NOTE: a) Do not use.00 after each number, or color your work b) Do not use excessive S signs on your statements c) This Project is due Thursday March 26, 2020. Attach printed copies of your schedule of cost of goods manufactured (with the calculation of the cost of one unit) and income statement to this project sheet and give it to me on or before the due date. Also, email me your Excel schedule of cost of goods manufactured and income statement on or before the due date. Font Paragraph NIOS, LEUKELEN Premium Watches, Inc. produces and sells children's smartwatches. The company started the year 2019 with 1,500 watches and produced an additional 75,132 watches. The income statement below was prepared hy the com i nentenced accountant Premium Watches Inc Income Statement As at December 31, 2019 Sales revenue (67,500 watches....................... $269,500 Uneamedrent revenue ........ .... 4,000 Gain on sale of investment........ 1,200 Royalty revenue 500 Interest payable.... I 1.500 Total revenue .................. $276,700 Less operating expenses: Indirect manufacturing labor cost 7,200 Utilities..... .. 9,200 Direct manufacturing labor cost 47,000 Factory equipment 50,000 Direct materials purchased 95.000 Insurance expense...... .... 2,500 Rent expense. ............ 27,000 Interest expense............. . 300 Selling expenses....... ............ 34,700 Administrative expenses. ----.. ............. 30,900 Research and development expense.............................. 5,000 Prepaid insurance expenses........................................ 4,000 Short-term investment............................................. 8,000 Dividend paid Restructuring costs. .............. ... ... .... ........ 0,000 Total operating expenses............................... ... 327,300 Net operating loss... ........................ ($50.600) a Sixty five percent (65%) of utilities and 70% of insurance expense relates to factory operations. Add the remaining amounts equally to selling expenses and administrative expenses b Ninety percent (90%) of rent expense is associated with factory operations. Add the remaining 10% equally to selling expenses and administrative expenses. c. Factory equipment is estimated to have a useful life of 5 years with a $5,000 salvage value remaining the end ofits useful life. The company uses the double-declining b dance method of depreciation d Inventory balances at the beginning and ending of the period were: January 2012 December 31, 2019 Direct materials................ $4,600 $7,000 Work-in-process........... $9,000 Finished goods ................ $3,750 There amounts were not taken into account when the statements were prepared $12,000 8 English (United States o search o e atibility Mode] - Word CD AaBbc AaBb C Aa Bbcel AaB Cel AaBbCel AaBbel ABDOC ABC ABAC Aalbo title Title TNo Spac. Subtle Em... Intense E. Quote Intense Q.. Subtle Rel. Intense Re... Book Title Titus Styles Ed e The company's tax rate is 21% The president is disappointed with the resultafor s endhas asked you to the income statement and make a recommendations to whether the y should look foraster f asts Required: 1. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2019. Also, calculate the cost of producing one watch 2. Prepare a corrected multiple step income statement for the year ended December 31, 2019 INSTRUCTIONS: A. This assignment must be completed in Exce. Handwritten work or late assignments will not be accepted B. Grading of this project will be based on: 1. Accuracy of your schedule of cost of goods manufactured and income statement 2. Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and income statement. NOTE: a) Do not use.00 after each number, or color your work b) Do not use excessive S signs on your statements c) This Project is due Thursday March 26, 2020. Attach printed copies of your schedule of cost of goods manufactured (with the calculation of the cost of one unit) and income statement to this project sheet and give it to me on or before the due date. Also, email me your Excel schedule of cost of goods manufactured and income statement on or before the due date