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Gibson Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by issuing common stock. Gibson immediately purchased office furniture and

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Gibson Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by issuing common stock. Gibson immediately purchased office furniture and manufacturing equipment costing $7,000 and $33,500, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of four years. The company paid $11,900 for salaries of administrative personnel and $15,600 for wages to production personnel. Finally, the company paid $13,140 for raw materials that were used to make inventory. All inventory was started and completed during the year. Gibson completed production on 4,600 units of product and sold 3,700 units at a price of $15 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in year 1. (Round "Average cost per unit" to 2 decimal places.) b. Determine the amount of cost of goods sold that would appear on the year 1 income statement. (Do not round intermediate calculations.) c. Determine the amount of the ending inventory balance that would appear on the December 31, year 1, balance sheet (Do not round intermediate calculations.) d. Determine the amount of net income that would appear on the year 1 income statement (Round your final answer value to the nearest whole dollar.) e. Determine the amount of retained earnings that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) f. Determine the amount of total assets that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) a Total product cost Average cost per unit Cost of good sold C. Ending inventory d. Net income e. Retained earning Total asset

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