Craig’s Pets succeeded so well that Craig decided to manufacture his own brand of

Price: $3.99


P16-31B Preparing cost of goods manufactured schedule and income statement
for a manufacturing company [30–45 min]

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

Materials 13,200 Ending materials 7,000
Other information
Direct material purchases 31,000 Plant janitorial services 200

and so on...

Requirements

1. Prepare a schedule of cost of goods manufactured for Organic Bones for the year
ended December 31, 2012.

2. Prepare an income statement for Organic Bones for the year ended
December 31, 2012.

3. How does the format of the income statement for Organic Bones differ from the
income statement of a merchandiser?

4. Organic Bones manufactured 15,400 units of its product in 2012. Compute the
company’s unit product cost for the year.