PR 16-5A Flow of Costs and Income Statement Obj. 2 Ginocera Inc is a designer, manufacturer and distributor of custom gourment Ikitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 2018. In January, the company spent $600,000 to develop a late-night advertising infomercial for the new product. During 2018, the company spent an additional $1,400,000 promoting the product through these infomercials, and $800,000 in legal costs. The lives were ready for manufacture on January 1, 20YA. Ginocereuses a job order onst system to accumulate costs associated with the Kitchen Ninja knife. The unit direct materials cost for the life is: Hardened steel blessed for vite shalt and by Wand how Packaging $4.00 1.50 0.50 The production process is straightforward. First, the hardened steel blanke, which are purchased directly from a raw material supplier are stamped into a single piece of metal these includes both the blade and the salt. The samping machine requires one hour per 250 knives After the life shafts are stamped, they are brought to an assembly area where an cmployee attaches the handle to the shaft and packs the knife into a decorative box. The direct laborentis S0.50 per unit. The knives are sold to stores. llach store is given promotional materials, such as posters and aisle displays. Promotional materials cost $60 per store. In addition, shipping costs average $0.20 per knife. Total completed production was 1,20NI, DUCI units during the seat Other information 1888 follows: Number of customers (SOA) Number of rives sold Wholesale price (ta stare) per krite 60,000 1,120,000 316 Tactory overhead cost is applied to jobs at the rate of $000 per stamping machine bour after the knite blanks are stamped. There were an additional 25,000 stamped lives, handles, and cases in process and waiting to be assembled on December 31, 2010, Instructions 1. Prepare an annual income statement for the Kitchen Ninja knife series, including supporting cupulations, fruit the information provided Art Check Figure: Operating income, 5132.000 2. Determine the balances in the work in process and finished goods inventories for the Kitchea Ninja kunile series on December 31, 20YS. 125% T I Shape Media Comment Do Collaborate View Zoom Add Category Insert Table Chart Text Format Organize Text Arrange + Pr. 16(2)-6A Sol Table Cell H 1 J L M R 8 B C D D E Kay Code Keycode here Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry, 9 10 11 12 13 1. 14 15 16 12 Ginocera Inc. Income Statement For the Year Ended December 31, 2048 , Table Styles Sales 18 19 Headers & Footer HO . TO 0 TO 20 Table Name 21 Gross profit Selling and administrative expenses Selling expenses: 22 23 Rows 69 24 25 Columns 320 26 Total selling expenses Administrative expenses Table Font Size A A A 2a 29 Total selling and administrative expenses Operating income Table Outline 30 31 1 pt 32 33 Outline table name 24 35 Grldlines 36 37 Cost of goods sold supporting calculation: Manufacturing cost per unit (knife): Direct materials: Hardened steel blanks Wood (for handle) Packaging Total direct materials Direct labor Factory overhead Total manufacturing cost per knife x Number of units sold Cost of goods sold 38 39 Alternating Row Color 40 11 42 Row & Column Size 43 44 Height 15 pt Fit 45 Width 76 pt Fit 48 2. 17 Finished goods inventory balance, December 31, 2048: Llinit Bend DNA T View Insert Table Chart Text Shape Media Comment Low Battery Your Mac will sleep soon unless plugged into a power outlet. + 125% Zoom Add Category Pr. 16(2)-6A Sol Pro TTT B C E IVIAI LIIVIQUILITY W POLNIC x Number of units sold Cost of goods sold 10 A F H
