Prepare an income statement for organic bones

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Reference no: EM131198333

Preparing cost of goods manufactured schedule and income statement for a manufacturing company

Craig's Pets succeeded so well that Craig decided to manufacture his own brand of chewing bone-Organic Bones. At the end of December 2012, his accounting records showed the following:

Inventories:	Beginning	Ending
Materials	$ 13,200	$ 7,000
Work in process	0	4,000
Finished goods	0	5,800
Other information:
Direct material purchases	$ 31,000	Utilities for plant	$ 1,900
Plant janitorial services	200	Rent on plant	11,000
Sales salaries expense	5,400	Customer service hotline expense	1,200
Delivery expense	1,400	Direct labor	23,000
Sales revenue	110,000

Requirements

1. Prepare a schedule of cost of goods manufactured for Organic Bones for the year ended December 31, 2012.

2. Prepare an income statement for Organic Bones for the year ended December 31, 2012.

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

4. Organic Bones manufactured 15,400 units of its product in 2012. Compute the company's unit product cost for the year.

Reference no: EM131198333

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