Question

Yummy Treats 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 account balances.) (Click the icon to view other information.) Read the requirements Requirement 1. Prepare a schedule of cost of goods manufactured for Yummy Treats for the year ended December 31, 2018. (For accounts with a $0 balance, make sure to enter "0" in the appropriate column.) Х - X Yummy Treats Schedule of Cost of Goods Manufactured Year Ended December 31, 2018 Data Table Data Table Balances: Other information: Direct Materials Used: Beginning Ending $ 13,900 $ 10,500 S 32,000 Direct Materials Work-in-Process Inventory Finished Goods Inventory 0 1,250 100 0 5,800 5,700 1,900 111,000 Print Direct materials purchases Plant janitorial services Sales salaries Delivery costs Net sales revenue Utilities for plant Rent on plant Customer service hotline costs Direct labor Done Direct Materials Used 1,000 15,000 Manufacturing Overhead: Х - Requirements 1,100 16,000 Print Done Total Manufacturing Overhead Total Manufacturing Costs incurred during the Year Total Manufacturing Costs to Account For 1. Prepare a schedule of cost of goods manufactured for Yummy Treats for the year ended December 31, 2018 2. Prepare an income statement for Yummy Treats for the year ended December 31, 2018 3. How does the format of the income statement for Yummy Treats differ from the income statement of a merchandiser? 4. Yummy Treats manufactured 17,500 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent. Cost of Goods Manufactured Print Done

Answer 1

Requirement 1 YUMMY TREATS Cost Of Goods Manufactured Schedule Year Ended December 31,2018 Beginning WIP Inventory $0 Direct Materials Used: Beginning Raw Materials Inventory $13,900 Purchases of Raw Materials $32,000 Raw Materials Available For Use $45,900 Ending Raw Materials Inventory $10,500 Direct Materials Used $35,400 Direct Labor $16,000 Manufacturing Overheads: Plant Janitorial service $100 Utilities For Plant $1,000 Rent on Plant $15,000 Total Manufacturing Overheads $16,100 Total Manufacturing Costs $67,500 Total Manufacturing Costs To Account For $67,500 Less: Ending WIP Inventory(6/30/20) $1,250 Cost of Goods Manufactured $66,250 Requirement 2 YUMMY TREATS Income Statement Year Ended December 31,2018 Revenues:      Sales Revenue $1,11,000 Cost of Goods Sold:      Beginning Finished Goods Inventory $0      Cost of Goods Manufactured* $66,250      Cost of Goods Available for Sale $66,250 Less:      Ending Finished Goods Inventory $5,800 Cost of Goods Sold $60,450 Gross Profit $50,550 Selling and Administrative Expenses:     Sales Salaries Expense $5,700     Delivery Expense $1,900     Customer Service Hotline Expense $1,100 Total Selling and Administrative Expenses $8,700 Net Income (Loss) $41,850 *From Schedule of Cost of Goods Manufactured in Requirement 1 Requirement 3 Manufacturing Company In case of a manufacturing company, cost of goods sold in the income statement is based on cost of goods manufactured and the change in Finished Goods Inventory. Merchandising Company In case of a merchandising company, cost of goods sold in the income statement is based on cost of merchandise purchased (including freight in) and the change in Merchandise Inventory. Requirement 4 Unit product cost Cost of goods manufactured / Total units produced $66,250 / 17,500 units $3.79 per unit (rounded to nearest cent)