Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm cost of goods sold statement.

Kildeer Company

Statement of Cost of Goods Sold

For the Year Ended December $31$

Kildeer Company makes easels for artists. During the last calendar year, a total of $20,000$ easels were made, and $21,000$ were sold for $$56$ each. The actual unit cost is as follows:

Direct materials $$15\mathrm{.}00$

Direct labor $6\mathrm{.}00$

Variable overhead $5\mathrm{.}00$

Fixed overhead $16\mathrm{.}00$

Total unit cost $$42\mathrm{.}00$

The selling expenses consisted of a commission of $$0\mathrm{.}90$ per unit sold and advertising co$-$payments totaling $$92,000.$ Administrative expenses, all fixed, equaled $$176,500.$ There were no beginning and ending work$-$in$-$process inventories. Beginning finished goods inventory was $$155,400$ for $3,700$ easels.

Required:

Question Content Area

$1.$ Calculate the number and the dollar value of easels in ending finished goods inventory.

Ending units fill in the blank e$0$a$058$f$65$f$98$fef$\_1$

$3,300$

Dollar amount $fill in the blank e$0$a$058$f$65$f$98$fef$\_2$

$138,600$

Feedback Area

Feedback

$1.$ Remember that cost of goods manufactured increases finished goods inventory.

Question Content Area

$2.$ 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

$Beginning finished goods inventory

$155,400$

Add: Cost of goods manufactured

Add: Cost of goods manufactured

$840,000$

Cost of goods available for sale

$Cost of goods available for sale

$995,400$

Less: Ending finished goods inventory

Less: Ending finished goods inventory

$-138,600$

Cost of goods sold $fill in the blank c$1$c$63$df$7502804$a$\_9$

$856,800$

Feedback Area

Feedback

$2.$ See Example $2\mathrm{.}3$

Question Content Area

$3.$ Prepare an absorption$-$costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, $\mathrm{.}5235$ would be $52\mathrm{.}35\%$ and you would enter $52\mathrm{.}35$ as your answer.

Kildeer Company

Income Statement: Absorption Costing

For the Year Ended December $31$

Percent

Sales

$Sales

$1,176,000$

Sales

$100$

$\%$

Cost of goods sold

Cost of goods sold

$856,800$

Cost of goods sold

$72\mathrm{.}86$

$\%$

Gross margin

$Gross margin

$319,200$

Gross margin

$27\mathrm{.}14$

$\%$

Less operating expenses:

Commissions

$Commissions

$18,900$

Advertising co$-$pays

Advertising co$-$pays

$92,000$

Administrative expenses

Administrative expenses

$176,500$

Administrative expenses

$287,400$

Administrative expenses

$15\mathrm{.}01$

$\%$

Operating income

$Operating income

$31,800$

Operating income

$2\mathrm{.}7$