Question: How do we solve this accounting question? 2. Gourmet Bones manufactures its own brand of pet chew bones. At the end of December 2018, the

How do we solve this accounting question?

How do we solve this accounting question? 2. Gourmet Bones manufactures its

2. Gourmet Bones manufactures its own brand of pet chew bones. At the end of December 2018, the ac-counting records showed the following: Balances: Beginning Ending Direct Materials $ 130,5 00 $ 70,500 Work-inProcess Inventory 20,000 35,000 Finished Goods Inventory 18,500 52,000 Other information: Actual Administrative Expenses 110,000 Actual Direct materials purchases $ 360,000 Budgeted Factory janitorial expense 7,000 Actual Sales salaries expenses 60,000 Actual Shipping expenses 13,000 Actual Net sales revenue 1,070,000 Budgeted Utilities for factory 13,000 Budgeted Rent on factory building 170,000 Actual Customer service hotline expense 12,000 Actual Direct labor 230,000 Actual Income Tax Expense 22,000 Budgeted Machine hours 1,900 hours Actual Machine hours 1,950 hours Please prepare a multi-step income statement for the company for 2018

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