Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 34,000 easels were made, and 35,000 were sold for $56 each. The actual unit cost is as follows: Direct materials $14.00 Direct labor 4.00 Variable overhead 9.00 15.00 $42.00 Fixed overhead Total unit cost The selling expenses consisted of a commission of $1.10 per unit sold and advertising co-payments totaling $94,000. Administrative expenses, all fixed, equaled $176,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $109,200 for 2,600 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 Cost of goods sold Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold 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 Sales Cost of goods sold Gross margin Less operating expenses: Commissions Advertising co-pays Administrative expenses Operating income Percent 4. How Kildeer's accountants might utilize one or more data analytic types (descriptive, diagnostic, predictive, or prescriptive), along with its absorption-costing income statement, to improve various decisions involving its easels (refer to Exhibit 2.5 and Exhibit 2.6 for a review of data analytic types). data analytics would inform accountants as to any historic trends in the easels' sales revenues, cost of goods sold, and profitability. Finally, data analytics, such as an analysis of the easel's significant cost drivers, would inform accountants as to why the easels incur their current costs given existing production technologies and so forth. data analytics, such as sales or cost of goods sold forecasting models, would help accountants better predict future trends in the easels' sales, costs, and profitability. analytics, such as Monte Carlo simulations, should help accountants to more effectively reduce the future product cost of manufacturing easels, as well as full cost across the value chain of designing, delivering, and servicing easels.