Ceriweden,Inc There Are No Beginning Inventories

question 235

Essay

Ceriweden,Inc.has provided the following financial data for the year:
$$\begin{array} { | l | r | c | } \hline \text { Units produced and sold } & 3,500 & \text { units } \\\hline \text { Sales price } & \$ 220 & \text { per unit } \\\hline \text { Direct materials } & \$ 25 & \text { per unit } \\\hline \text { Direct labor } & \$ 45 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 30 & \text { per unit } \\\hline \text { Variable selling and administrative costs } & \$ 20 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 105,000 & \text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 140,000 & \text { per year } \\\hline\end{array}$$ There are no beginning inventories.Prepare an income statement for the year using the traditional format.

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Definitions:

Low-Cost Items

Products that are sold at a minimal expense, often targeting budget-conscious consumers.

Convenience Product

Goods that the consumer purchases frequently, immediately, and with minimal comparison and buying effort.

Shopping Product

A type of product that consumers purchase after comparing quality, price, and style from several sellers.

Specialty Product

A product that is characterized by its unique attributes, high level of quality, or brand identity, often leading consumers to put forth a significant effort in purchasing it.