emium Watches, Inc. produces and sells children's smart watches. The company started the year 2018 with 1,500 watches and produced an additional...
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Can you kindly assist with the attached. I need help putting together an excel document answering the questions on the page.
Thank you for your help.
emium Watches, Inc. produces and sells children's smart watches. The company started the year 2018with 1,500 watches and produced an additional 75,132 watches. The income statement below was preparedby the company's inexperienced accountant.Premium Watches Inc.Income StatementAs at December 31, 2018Sales revenue (67,500 watches) .. ... .. . .. . ..mmmmmm.Unearned rent revenue................mmmmmmmom$269,5004,000Gain on sale of investment ..........mmmmmmmmmmmm1,200Royalty revenue................mmmmmmmmm.500Interest payable..............................................1.500Total revenue ........... . . ... . ..mmmmmmmmm.$276,700Less operating expenses:Indirect manufacturing labor Cost.................mmm.7,200Utilities ............... mmmmmm.9,200Direct manufacturing labor cost. ................... .........47,000Factory equipment........... ...mmmmmmmmm50,000Direct materials purchased............. .. .. .95,000Insurance expense...............wow..... ...2,500Rent expense................................27,000Interest expense.............. ...........300Selling. expense.............. .............34,70Administrative expense............... . .. . .30,900Research and development expense.....5,000Prepaid insurance expenses....................am......4,000Short-term investment...................................8,000Dividend paid.................................500Restructuring costs..............manoammm..Total operating expenses ........ .6,000Net operating loss .......... ..327.300($50,600)a. Sixty five percent (65%) of utilities and 70% of insurance expense related to factory operations. Applythe remaining amounts equally to selling expense and administrative expense.b. Ninety percent (90%) of the rent expense is associated with factory operations; Allocate the remaining10% equally to selling expense and administrative expenses.. Factory equipment is estimated to have a useful life of 5 years with a $5,000 salvage value remaining atthe end of its useful life. The company uses the straight-line method of depreciation.d. Inventory balances at the beginning and ending of the period were:Direct materials............ . . ...January, 2018$4,600December 31, 2018Work-in-process ........... . .Finished goods ............... .. .$9,000$7,000$3,750$12,000These amounts were not taken into account when the statements were prepared.e. The company's tax rate is 21%.The president is disappointed with the results of operations and has asked you to review the incomeRequired:statement and make a recommendation as to whether the company should look for a buyer for its assets.1. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2018.2. Prepare a corrected multiple-step income statement for the year ended December 31, 2018.3.Calculate the cost of producing one watch if the company produced 1 10,000 watches in 2018 (roundyour answer to two decimal points).
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