Year 1

Techlight is a US based company and follows US GAAP. It makes charge stations for iPhone, iPad, Cell Phone, Tablets. It had no beginning inventories in year 1. It produced 25,000 units and sold 20,000 units during the year. The selling price per unit was $ 30. The company has given you the following data realting to costs.

- Direct material and direct labor cost per unit $10

- Sales commission per unit $3

It also incurs manufacturing costs of $150,000, and selling, general and administrative expenses of $100,000 irrespective of volume.

To answer the above questions, fill up the details in the blue cells in the excel spreadsheet (screenshot) provided to you relating to

1) Physical inventory units

2) Cost of goods sold ($)

3) Traditional Income Statement

Year 2

In year 2, Techlight Inc. started with 5,000 units, produced 25,000 units, and sold 30,000 units at $30 each. All costs remained unchanged.

Fill in the excel for year 2 (screenshot).