Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 38,000 easels were made, and 39,000 were sold for $60 each. The actual unit cost is as follows: Direct materials $13.00 Direct labor 5.00 Variable overhead 11.00 Fixed overhead 16.00 Total unit cost $45.00 The selling expenses consisted of a commission of $1.00 per unit sold and advertising co-payments totaling $93,000. Administrative expenses, all fixed, equaled $175,500. There were no beginning and ending work-in- process inventories. Beginning finished goods inventory was $148,500 for 3,300 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Ending units Dollar amount Feedback Check My Work 1. Remember that cost of goods manufactured increases finished goods inventory. 2. Prepare a cost of goods sold statement. Kildeer Company 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 Cost of goods sold Feedback Check My Work 2. See Example 2.3 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, 5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Percent 88 % Accounting 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Less operating expenses: Percent % % % % %