3. Schneider Manufacturing Company was started on January 1, 2018, when it acquired TL 180,000...
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3. Schneider Manufacturing Company was started on January 1, 2018, when it acquired TL 180,000 from its owners. Schneider immediately purchased office furniture and manufacturing equipment costing TL 15,000 and TL 42,000, respectively. The office furniture had a four-year useful life and a zero salvage value. The manufacturing equipment had a TL 6,000 salvage value and an expected useful life of three years. The company paid TL 18,000 for salaries of administrative personnel and TL 24,000 for wages to production personnel. Finally, the company paid TL 27,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Schneider completed production on 5,000 units of product and sold 4,000 units at a price of TL 20 each in 2018. Required: (15 points) a) Determine the total product cost and the average cost per unit of the inventory produced in 2018. b) Determine the amount of cost of goods sold that would appear on the 2018 income statement. c) Determine the amount of the ending inventory balance that would appear on the December 31, 2018 balance sheet. d) Determine the amount of net income that would appear on the 2018 income statement
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