The Data Given Below Pertains to the Operations of the Newton

question 30

Essay

The data given below pertains to the operations of the Newton Products Corporation for the year ended December 31, 2013 $\begin{array} { l r } \text { Sales: } & 3,400 \text { units at } \$ 55 \text { a unit } \\\text { Variable manufacturing costs: } & 3,200 \text { units at } \$ 25 \text { a unit } \\\text { Variable selling and admin. expenses: } & \$ 5 \text { a unit } \\\text { Fixed manufacturing costs: } & \$ 24,000 \\\text { Fixed selling and admin. expenses: } & \$ 16,000 \\\text { Finished goods inventory, Jan. 1, 2013: } & 500 \text { units } \\\text { Finished goods inventory, December 31, } & 600 \text { units }\end{array}$
-Based on the information given prepare an income statement for the year using the direct costing approach. Assume that the beginning finished goods inventory had a cost of $25 per unit.