Question

Gourmet Bones manufactures its own brand of pet chew bones. At the end of December 2018, the accounting records showed the following: (Click the icon to view the accounting records.) Read the requirements Requirement 1. Prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31, 2018. (For accounts with a $0 baland 1. Prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31, 2018. 2. Prepare an income statement for Gourmet Bones for the year ended December 31, 2018. 3. How does the format of the income statement for Gourmet Bones differ from the income statement of a merchandiser? 4. Gourmet Bones manufactured 17,900 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent. Gourmet Bones Schedule of Cost of Goods Manufactured Year Ended December 31, 2018 i Data Table Direct Materials Used: Print Done Beginning $ 13,500 Balances: Direct Materials Work-in-Process Inventory Finished Goods Inventory Other information: Ending $ 7,500 3,500 5,200 Direct Materials Used 0 Manufacturing Overhead: $ Direct materials purchases Plant janitorial services Sales salaries Delivery costs Net sales revenue Utilities for plant Rent on plant Total Manufacturina Overhead 36.000 700 6,000 1,300 107,000 1,300 17.000 1,200 23,000 Choose from any list or enter any number in the input fields and then click Check Ang parts 3 remaining Customer service hotline costs Direct labor Check Answer

Answer 1

Answer Page: No 0 Schedule of cost of goods marubactured for Gourmet Bones for the y came ended dec 34,2018 Particular Amount Amount Amount Beginning work in process inventory Direct materials used Beginning direct materials $13500 Purchases of direct materials (including $36000 O freight in) Direct materials available for sale $49500 Ending disect matenials. ($ 7500) $42000 Direct labor $ 23000 Manubacturing overbead Indirect materials Indirect labor Depreciation - plant & equipment Plant utilities, Insurance & Property taxes $19000 $19000 Total manutacturing costs incurred $84000 during the year. Total tranufacturing costs to account for $84000 Ending work in process inventory ($ 3500) Cost of goods manubactured * 50500

Page No @ - Plant utilities, insurance & properlig taxes = 1300 + 500+ 17000 = $19000 1..coof of goods manufactured by the company – $80.500 Id i $ 31400 @ Income statement Particular Amount I Amount Net sales service revenue $107000 Cost of goods sold ($75300) Gross profit Selling and administrative expenses Sales salanies $6000 Delivery costs $ 1300 Coustomer Service Hotline costs $ 1200 1($8500 Operating income $ 23,200 Coof of goods sold - Cost of gods available for sale – Erding finished goods inventory

- (beg.-finished goods inventory - cost of goods manufactory Page.no - ending finished goods inventory = (0 - 80500) – 5200 = 80500 - 5200 = $45300 Cost of goods sold - $75300] Operating fncome - $ 23,200 ☺ Difference of income statement fermant between the manuts coduring gue merchandising company? The majogi differences between the both the company -e's income statement formats are, the manufacturing Company has the cost of goods manufactured and the mechan - dising company has purchases and freight - day in the place of coof of goods franubactured:

. Page. No 4 stated with the help of following formats as The difference is shown below GB(manubaciering company) Merchandising Company Amount Amount sales revenue : Sales revenire Coot of goods sold Cost of goods sold beginning finished goods inventory - Beginning merchandise inventory cost of goods manufactured Purchases cost of goods awailable for sale Merchandise inventory available for sale Ending finished goods inventang Ending merchandise inventory cost of goods sold cost of goods sold | Gross profit Gross Profit Selling & adminisholive expenses a Selling & administrative expenses - Operating income Operating income @ cord of cache para lucht cost of goods manufactured Total omils produced 80500 14900 = $4.50 1.coof of each product = $4.50 Cost of each product'e