Premium Watches, Inc. produces and sells children's smart watches. The company started the year 2018 with 1,500 watches and produced an additional 75,132 watches. The income statement below was prepared by the company's inexperienced accountant Premium Watches Inc Income Statement As at December 31, 2018 $269,500 4,000 1,200 500 Sales revenue (67,500 watches) Unearned rent revenue.. . . Royalty revenue Interest payable.. Total revenue $276,700 Less operating expenses 7,200 9,200 Utilities Direct manufacturing labor cost. Factory equipment.... Direct materials purchased. 47,000 50,000 95,000 2,500 27,000 300 34,700 30,900 5,000 4,000 Administrative expense Research and development expense.. Prepaid insurance expenses... Short-term investment Dividend paid.. 500 6,000 Total operating expenses ($50,600) Net operating loss a. Sixty five percent (65%) of utilities and 70% of insurance expense related to factory operations. Apply b. Ninety percent (90%) of the rent expense is associated with factory operations; Allocate the remaining c. Factory equipment is estimated to have a useful life of 5 years with a $5,000 salvage value remaining at d. Inventory balances at the beginning and ending of the period were: the remaining amounts equally to selling expense and administrative expense. 10% equally to selling expense and administrative expenses. the end of its useful life. The company uses the straight-line method of depreciation. cem ua $7,000 $12,000 $4,600 These amounts were not taken into account when the statements were prepared. e. The company's tax rate is 21% The president is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: 1. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2018. 2. Prepare a corrected multiple-step income statement for the year ended December 31, 2018. 3. Calculate the cost of producing one watch if the company produced 110,000 watches in 2018 (round your answer to two decimal points) NSTRUCTIONS: A. This assignment must be completed in Excel. Handwritten work or late assignments will not be accepted. B. Grading of this project will be based on: 1. Accuracy of your schedule of cost of goods manufactured and income statement 2. Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and income statement. NOTE: a) Do not use .00 after each number, or color your work b) Do not use excessive $ signs on your statements. c) This Project is due Tuesday April 23, 2019. Attach printed copies of your schedule of cost of goods manufactured and income statement to this project sheet and give it to me on or before the due date. Also, email me your Excel schedule of cost of goods manufactured and income statement on or before the due date