Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of 270,000...
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Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of 270,000 cameras were made, and 274,000 were sold for $8 each. The actual unit cost per camera produced during the year is as follows: Direct materials $2.25 Direct labor 1.50 Variable overhead 0.65 Fixed overhead 0.70 Total unit cost $5.10 Research and development expenses amounted to $70,000. The selling expenses consist- ed of a commission of $0.25 per unit sold and advertising copayments totaling $36,000. Administrative expenses, all fixed, equaled $83,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $30,600 for 6,000 cameras. Required: 1. Calculate the number of cameras in ending finished goods inventory and their costs. 2. Prepare a cost of goods sold statement for last year. 3. Prepare an absorption-costing income statement for last year.
Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of 270,000 cameras were made, and 274,000 were sold for $8 each. The actual unit cost per camera produced during the year is as follows:
Direct materials $2.25
Direct labor 1.50
Variable overhead 0.65
Fixed overhead 0.70
Total unit cost $5.10
Research and development expenses amounted to $70,000. The selling expenses consist- ed of a commission of $0.25 per unit sold and advertising copayments totaling $36,000. Administrative expenses, all fixed, equaled $83,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $30,600 for 6,000 cameras.
Required:
1. Calculate the number of cameras in ending finished goods inventory and their
costs.
2. Prepare a cost of goods sold statement for last year.
3. Prepare an absorption-costing income statement for last year.
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