The following is Whitman Ite's partial trial balance as of December 31, 2021: Advertising$30,000 Direct labour$192,000 Administrative
Question:
The following is Whitman Itée's partial trial balance as of December 31, 2021:
Advertising$30,000
Direct labour$192,000
Administrative expenses$125,520
Indirect labour (FGF) $70,000
Raw materials used$128,000
Finished goods inventory - January 1, 202 $14,000
Plant maintenance (FGF)$12,200
Tooling repairs (FGF) $8,800
Vendor Commissions$15,000
Property Taxes - Plant (FGF)$11,800
Plant Supplies (FGF)$14,800
Insurance - Plant (FGF)$12,400
You are also provided with the following information:
Manufacturing records indicate that 30,000 units were manufactured during the year.
1. Present the company's manufacturing cost statement for the year 2021 using the full cost method.
2. Calculate the unit cost of manufacturing.
3. Calculate the cost of finished goods inventory as of December 31, 2021 and the cost of goods sold during 2021 knowing that 2,000 units were not sold.
4. Present the company's income statement for the year 2021 assuming that sales are $800,000.
