Prime Cost, Conversin Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 26,000 easels were made, and 27,000 were sold for $52 each. The actual unit cost is as follows: Direct materials $15.00 Direct labor : 4.00 Variable overhead 6.00 Fixed overhead 14.00 $39.00 Total unit cost The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $90,500. Administrative expenses, all fixed, equaled $181,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Ending units Dollar amount 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Previous Next G