PR 16-5B Flow of costs and income statement Obj. 2 1. Income from Technology Accessories In operations, $656,000 mology Accessories Inc. is a designer manufacturer and distributor of accessories for consumer d esioner manufacture electronic products Early in 2013 the company began production of e products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the ileather. The cover is made of stitched leather with a velvet interior and ugly around most tablet computers. In January, $750,000 was spent on developing market- ing and advertising materials. For the first six months of 2043, the company spent an additional EXCEL TEMPLATES 600 0,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3. Technology Accessories Inc, uses a job order cost system to accumulate costs for the Leather. Direct materials unit costs for the iLeather are as follows: Leather Velvet 5.00 Packaging 0.40 Total $15.40 S10.00 The actual production process for the ileather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exte rior edge into the product. The machine requires one hour per 125 iLeathers. After the ileather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit. (Continued) ugh a sales force. The sales force ther information is as Chapter 16 Job Order Costing The completed packages are then sold to retail outlets through a sales for is compensated by a 20% commission on the wholesale price for all sales. Total completed production was 500,000 units during the year. Othe follows: Number of iLeather units sold in 2013 Wholesale price per unit 460,000 $40 nachine hour. There were d on December 31, 20Y3. Factory overhead cost is applied to jobs at the rate of $1,250 per machine hour an additional 22,000 cut and stitched iLeathers waiting to be assembled on December Instructions 1. Prepare an annual income statement for the iLeather product, including supportino cal tions, from the information provided. 2. Determine the balances in the finished goods and work in process inventories for the iLeather product on December 31, 2013 PR 16-5B Flow of costs and income statement Obj. 2 1. Income from Technology Accessories In operations, $656,000 mology Accessories Inc. is a designer manufacturer and distributor of accessories for consumer d esioner manufacture electronic products Early in 2013 the company began production of e products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the ileather. The cover is made of stitched leather with a velvet interior and ugly around most tablet computers. In January, $750,000 was spent on developing market- ing and advertising materials. For the first six months of 2043, the company spent an additional EXCEL TEMPLATES 600 0,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3. Technology Accessories Inc, uses a job order cost system to accumulate costs for the Leather. Direct materials unit costs for the iLeather are as follows: Leather Velvet 5.00 Packaging 0.40 Total $15.40 S10.00 The actual production process for the ileather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exte rior edge into the product. The machine requires one hour per 125 iLeathers. After the ileather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit. (Continued) ugh a sales force. The sales force ther information is as Chapter 16 Job Order Costing The completed packages are then sold to retail outlets through a sales for is compensated by a 20% commission on the wholesale price for all sales. Total completed production was 500,000 units during the year. Othe follows: Number of iLeather units sold in 2013 Wholesale price per unit 460,000 $40 nachine hour. There were d on December 31, 20Y3. Factory overhead cost is applied to jobs at the rate of $1,250 per machine hour an additional 22,000 cut and stitched iLeathers waiting to be assembled on December Instructions 1. Prepare an annual income statement for the iLeather product, including supportino cal tions, from the information provided. 2. Determine the balances in the finished goods and work in process inventories for the iLeather product on December 31, 2013