(L. OBJ. 5) Preparing cost of goods manufactured schedule and income statement for a man...

(L. OBJ. 5) Preparing cost of goods manufactured schedule and income statement for a manufacturing company [30-45 min]

Clyde’s Pets succeeded so well that Clyde decided to manufacture his own brand of chewing bone—Denim Bones. At the end of December 2011, his accounting records showed the following:

Requirements

1. Prepare a schedule of cost of goods manufactured for Denim Bones for the year ended December 31, 2011.

2. Prepare an income statement for Denim Bones for the year ended December 31, 2011.

3. How does the format of the income statement for Denim Bones differ from the income statement of a merchandiser?

4. Denim Bones manufactured 17,400 units of its product in 2011. Compute the company’s unit product cost for the year.