Acc206 Principles of Accounting II: P16-25A Charlie's Pets and Fido Treats

Acc206 Principles of Accounting

P16-25A Preparing cost of goods manufactured schedule and income statement for a manufacturing company
Charlie's Pets succeeded so well that Charlie decided to manufacture his own brand of chewing bone-Fido Treats. At the end of December 2012, his accounting records showed the following:
Inventories: Beginning Ending
Materials 13,400 9,500
Work in process - 2,000
Finished goods - 5,300
Other information:
Direct material purchases 33,000 Utilities for plant 1,600
Plant janitorial services 800 Rent of plant 13,000
Sales salaries expense 5,000 Customer service hotline expense 1,400
Delivery expense 1,700 Direct labor 22,000
Sales revenue 109,000

1. Prepare a schedule of cost of goods manufactured for Fido Treats for the year ended December 31, 2012.
2. Prepare an income statement for Fido Treats for the year ended December 31, 2012.
3. How does the format of the income statement for Fido Treats differ from the income statement of a merchandiser?
4. Fido Treats manufactured 18,075 units of its product in 2012. Compute the company's unit product cost for the year.
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