How of Costs and income statement Ginocera Ine, is a designeg, manufacturec, and distributor of low-cost, high-quabity stainless steel kitehen knives. A new kitchen knife seritis calied the Kikehen Ninja was released for production in early 20Y8. In January, the company spent 5359,100 to develop a late-night advertising infomerial for the new nroduct. buring 20v8, the company spent 4837,900 advertising the product through these infomerciais. In addition, the company incurred 5359,000 in legal costs. The knives were ready for manufacture on January 1,20Y8. Ginocera usei a job order cost system to accumulate costs associated with the kitchen knife. The unt direct materiais cost for the knife is as follows: The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material suppliec, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per 840 knives. After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaf and packs the knde in a decorative box. The direct labor cost is $0.20 per anit The knives are sold to stores. Each store is given promotional materiais such as posters and aisle displays, Promotional materials cost $35 per store. Jo addibion, shipping costs average $0.2 per knife. Total completed production was 342,000 units during the year, Other information is as foliows: Factory overhead cost is anplied to jobs at the rate of $420 per stamping machine hour after the knife blanks are stamped. There were an additional 85,500 stamped krives, handles, and cases waiting to be assembled on December 31,20 .8: In your computations, if requlred, round interim per unit costs to two decimal places: Required: 1. Prepare an anniual income statement for the Kitchen winja knife series. o Cheok My Woth 2. Determine the balances in the work in process and finistied goods imventorles for the Kitchen Nioja knfo senies on December 31 , 20YB