Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm

Kildeer Company makes easels for artists. During the last calendar year, a total of 39,000 easels were made, and 40,000 were sold for $56 each. The actual unit cost is as follows:

Direct materials	$15.00
Direct labor	6.00
Variable overhead	7.00
Fixed overhead	14.00
Total unit cost	$42.00

The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,000. Administrative expenses, all fixed, equaled $180,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $126,000 for 3,000 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	$

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
		$	%
			%
		$	%
Less operating expenses:
	$
			%
		$	%