Answer #1, 2

Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units in beginning inventory 0 Units produced 25,000 Units sold 21,500 Units in ending inventory 3,500 Variable costs per unit: k Direct materials $ 8 Direct labour 10 Variable manufacturing overhead 2 Variable selling and 4 administrative Total variable cost per unit $ 24 Fixed costs: '55 Fixed manufacturing overhead $ 75,000 Fixed selling and administrative 110'000 Total fixed costs $185.000 ' Assume that the company uses absorption costing. Raquhemk 1. Compute the unit product cost for one storage cabinet. -:I 2. Prepare an income statement for the year. (Do not leave any empty spaces; input a O wherever it is required.) Costofgoodssom