Question
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold at $52 each.
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold at $52 each. The actual unit cost is as follows:
Direct Materials $14.70
Direct Labor 5.80
Variable Overhead 3.25
Fixed Overhead 15.25
Total Unit Cost $39.00
The selling expenses consist of a commission of $1.30 per unit sold and advertising copayments totaling $95,000. Administrative expeses, all fixed, equaled $183,000. There were no beginning and ending work-in-progress inventories. Beginning finished goods inventory was $132,600 for 3,400 easels.
Required:
1. Calculate the number and the dollar value of easelsin ending and finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started