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Problem $10-22$A $($Algo$)$ Product versus selling, general, and administrative $($SG&A$)$ costs LO $10-2,10-3$

$4\mathrm{.}16$

points

Campbell Manufacturing Company was started on January $1,$ Year $1,$ when it acquired $$80,000$ cash by issuing common stock. Campbell immediately purchased office furniture and manufacturing equipment costing $$7,700$ and $$26,500,$ respectively. The office furniture had an eight$-$year useful life and a zero salvage value. The manufacturing equipment had a $$3,700$ salvage value and an expected useful life of three years. The company paid $$11,700$ for salaries of administrative personnel and $$15,300$ for wages to production personnel. Finally, the company paid $$15,320$ for raw materials that were used to make inventory. All inveniory was started and completed during the year. Campbell completed production on $4,900$ units of product and sold $3,970$ units at a price of $$15$ each in Year $1.($Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.$)$

Required

a$.$ Determine the total product cost and the average cost per unit of the inventory produced in Year $1.$

Note: Round "Average cost per unit" to $2$ decimal places.

b$.$ Determine the amount of cost of goods sold that would appear on the Year $1$ income statement. Note: Do not round intermediate calculations.

c$.$ Determine the amount of the ending inventory balance that would appear on the December $31,$ Year $1,$ balance sheet.

Note: Do not round intermediate calculations.

d$.$ Determine the amount of net income that would appear on the Year $1$ income statement.

Note: Do not round intermediate calculations.

e$.$ Determine the amount of retained earnings that would appear on the December $31,$ Year $1,$ balance sheet.

Note: Do not round intermediate calculations.

f$.$ Determine the amount of total assets that would appear on the December $31,$ Year $1,$ balance sheet.

Note: Do not round intermediate calculations.

$ox$ Answer is complete but not entirely correct.