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Can an accountant tutor help me with my homework please.


Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel

 

kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early

 

2016. In January, the company spent $600,000 to develop a late-night advertising infomercial for the

 

new product. During 2016, the company spent $1,402,000 promoting the product through these

 

infomercials, and $819,000 in legal costs. The knives were ready for manufacture on January 1, 2016.

 

Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit

 

direct materials cost for the knife is:

 

Hardened steel blanks

 

(used for knife shaft and blade)

 


 

$3.85

 


 

Wood (for handle)

 


 

1.40

 


 

Packaging

 


 

0.40

 


 

The production process is straightforward. First, the hardened steel blanks, which are purchased

 

directly from a raw material supplier, are stamped into a single piece of metal that includes both the

 

blade and the shaft. The stamping machine requires one hour per 250 knives.

 

After the knife shafts are stamped, they are brought to an assembly area where an employee attaches

 

the handle to the shaft and packs the knife into a decorative box. The direct labor cost is $0.45 per

 

unit.

 

The knives are sold to stores. Each store is given promotional materials, such as posters and aisle

 

displays. Promotional materials cost $60 per store. In addition, shipping costs average $0.15 per knife.

 

Total completed production was 1,200,000 units during the year. Other information is as follows:

 

Number of customers (stores)

 


 

58,500

 


 

Number of knives sold

 


 

1,128,000

 


 

Wholesale price (to store) per knife

 


 

$17

 


 

Factory overhead cost is applied to jobs at the rate of $650 per stamping machine hour after the knife

 

blanks are stamped. There were an additional 28,000 stamped knives, handles, and cases waiting to

 

be assembled on December 31, 2016.

 


 

A. Prepare an annual income statement for the Kitchen Ninja knife series, including supporting

 

calculations, from the information provided. Refer to the list of Amount Descriptions for exact wording

 


 

of the answer choices for text entries. In your computations, if required, round interim per-unit costs to

 

two decimal places.

 

Ginocera Inc.

 

Income Statement

 

For the Year Ended December 31, 2016

 

1

 

2

 

3

 

4 Selling expenses:

 

5

 

6

 

7

 

8

 

9 Administrative expenses:

 

10

 

11

 

12

 


 

B. Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja

 

knife series on December 31, 2016. In your computations, if required, round interim per-unit costs to

 

two decimal places.

 

Finished Goods

 


 

$

 


 

Work in Process

 


 

$

 


 

 







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