P16-25A Charlie’s Pets Preparing cost of goods manufactured

Charlie’s Pets succeeded so well that Charlie decided to manufacture his own brand of chewing bone Fido Treats. At the end of December 2012, his accounting records showed the following:

Inventories: Beginning Ending

Materials $13,400 $
9,500
Work in process 0 2,000
Finished Goods 0 5,300

Other Info:
Direct material purch. $33,000 Utilities for plant $
purchases 1,600
Plant janitorial svcs 800 Rent of plant 13,000
Sales salaries exp. 5,000 Customer service 1,400
hotline exp.
Delivery exp. 1,700 Direct Labor 22,000
Sales Revenue 109,000

Requirements:
1.Prepare a schedule of cost of goods manufactured for Fido Treats for the year ended December 31, 2012.
2.Prepare an income statement for Fido Treats for the year ended December 31, 2012.
3.How does the format of the income statement for Fido Treats differ from the income statement of a merchandiser?
4.Fido Treats manufactured 18,075 units of its product in 2012. Compute the company’s unit product cost for the year.

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