manufactures its own brand of pet chew bones. At the end of

December

2024,

the accounting records showed the following:

Data table

Balances:	Beginning	Ending
Direct Materials	$13,700	$10,500
Work-in-Process Inventory	0	4,500
Finished Goods Inventory	0	5,000

Data table

Other information:
Direct materials purchases	$40,000
Plant janitorial services	400
Sales salaries	5,600
Delivery costs	1,000
Net sales revenue	115,000
Utilities for plant	1,100
Rent on plant	14,000
Customer service hotline costs	1,700
Direct labor	18,000

Question content area bottom

Part 1

Requirement 1. Prepare a schedule of cost of goods manufactured for

Natural Bones

for the year ended

December

31,

2024.

(For accounts with a $0 balance, make sure to enter "0" in the appropriate column.)

Natural Bones
Schedule of Cost of Goods Manufactured
Year Ended December 31, 2024
Direct Materials Used:
Direct Materials Used
Manufacturing Overhead:
Total Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Cost of Goods Manufactured

Part 2

Requirement 2. Prepare an income statement for

Natural Bones

for the year ended

December

31,

2024.

(For accounts with a $0 balance, make sure to enter "0" in the appropriate column.)

Natural Bones
Income Statement
Year Ended December 31, 2024
Revenue:
Cost of Goods Sold:
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses:
Total Selling and Administrative Expenses
Operating Income

Part 3

Requirement 3. How does the format of the income statement for

Natural Bones

differ from the income statement of a merchandiser?

A manufacturer's cost of goods sold is based on its

cost of goods manufactured.

direct materials used.

manufacturing costs incurred during the year.

operating income.

In contrast, a merchandiser's cost of goods sold is based on its

ending inventory.

gross profit.

merchandise purchases.

operating income.

Part 4

Requirement 4.

Natural Bones

manufactured

17,500

units of its product in

2024.

Compute the company's unit product cost for the year, rounded to the nearest cent.

Cost per unit =