Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for $52 each. The actual unit cost is as follows:
Direct materials ..... $14.70
Direct labor ........ 5.80
Variable overhead ..... 3.25
Fixed overhead ..... 15.25
Total unit cost ........ $39.00
The selling expenses consisted of a commission of $1.30 per unit sold and advertising co- payments totaling $95,000. Administrative expenses, all fixed equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $132,600 for 3,400 easels.
1. Calculate the number and the dollar value of easels in ending finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement. Add a column for percentage of sales.