Clyde's Pets succeeded so well that Clyde decided to manufacture his own brand of chewing bone — Denim Bones. At the end of December 2009, 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, 2009.

2. Prepare an income statement for Denim Bones for the year ended December 31,2009.

3. How does the format of the income statement for Denim Bones differ from the income statement of Clyde's Pets?

4. Denim Bones manufactured 17,500 units of its product in 2009.

Compute the company's unit product cost for the year.

Transcribed Image Text:

Inventories: Materials Work in process Beginning $13,500 0 Ending $ 9,000 1,250 Finished goods 5,700 Other information: Direct material purchases $ 31,000 Utilities for plant $ 4,500 Plant janitorial services 1,250 Rent on plant 9,000 Sales salaries expense 5,000 Customer service hotline expense 1,000 Delivery expense 1,500 Direct labor 18,000 Sales revenue 105,000