Forever Manufacturing manufacture picture frames. At the end of December 2015, the accounting records of the...

Forever Manufacturing manufacture picture frames. At the end of December 2015, the accounting records of the business show the following:

Inventories 31/12/2014 31/12/2015

Materials $13,000 $7,750

Work in process 0 1,750

Finished goods 0 2,000

Other information:

Depreciation expense on plant equipment $15,000

Depreciation expense on delivery truck 2,500

R & D for graphic designs 3,700

Sales commission 4,000

Utilities for plant 2,000

Plant janitorial services 750

Direct labour 20,000

Direct material purchases 32,000

Sales Revenue 126,450

Customer warranty refunds 1,500

Rent on plant 11,000

Requirements:

i) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2015

ii) Prepare an income statement for Forever Manufacturing for the year ended December 31, 2015

iii) What is the unit product cost if Forever Manufacturing manufactured 1,000 picture frames for the year?

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Expert Solution

ekkarill92 answered 9 months ago

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