Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 32,000 easels were made, and 33,000 were sold for $56 each. The actual unit cost is as follows: Direct materials $13.00
Direct labor 5.00
Variable overhead 8.00
Fixed overhead 16.00
Total unit cost $42.00
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.
Required:
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. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places.