Chewy Bones manufactures its own brand of pet chew bones. At the end of December 2018, the accounting records showed the following:

Other information:
Direct materials purchases .................................. $ 39,000
Plant janitorial services ............................................ 900
Sales salaries ....................................................... 5,100
Delivery costs ...................................................... 1,700
Net sales revenue ............................................... 115,000
Utilities for plant ................................................... 1,200
Rent on plant ....................................................... 9,000
Customer service hotline costs .................................. 1,600
Direct labor ........................................................ 16,000
Requirements
1. Prepare a schedule of cost of goods manufactured for Chewy Bones for the year ended December 31, 2018.
2. Prepare an income statement for Chewy Bones for the year ended December 31, 2018.
3. How does the format of the income statement for Chewy Bones differ from the income statement of a merchandiser?
4. Chewy Bones manufactured 17,500 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent?

Transcribed Image Text:

Beginning Ending Balances: $ 10,500 1,500 Direct Materials $ 13,400 Work-in-Process Inventory Finished Goods Inventory 5,400