Ans:Total product cost and average cost:
Direct Materials= 11,500
Direct labor= 15,900
Manufacturing overhead (27,100 -3,700)/3 = 7,800
Total product cost= 11,500+15,900+7,800
= $ 35,200
Units= 4,400
Average cost= 8.00 per unit
B). Amount of cost of goods sold that would appear on income statement:
Number of units sold= 3,490
Average cost= 8
Cost of goods sold= 3,490*8
= 27,920
C).Amount of ending inventory balance that would appear on Dec 31,2018=
Number of units= 4,400
Number of units sold= 3,490
Ending inventory units= 910
Average cost per unit= 8
Ending inventory Balance= 910*$8
= $7,280
D). Amount of net income that would appear on income statement
Sales= (3,490*15) : 52,350
Less: Cost of goods sold= 27,920
Administrative salaries= 11,900
Depreciation on office furniture= (9,100/8) = 1,138
Net income= 11,392
E). Amount of retained earnings=
Beginning retained earnings= 0
Add: net income= 11,392
Less: dividends= 0
Ending retained earnings= 11,392
F). Amount of total assets that would appear on dec 31,2018=
Cash= (77,000-9,100-27,100-11,900-15,900-11,500+52,350)= 53,850
Ending inventory= 7,280
office equipment= 9100-3700=5,400
Manufacturing equipment = (27,100-7,800)= 19,300
Total Assets= 53,850+7,280+5,400+19,300
= 85,830
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