(Solved by Humans)-Problem 2-46 Preparation of Income Statement: Manufacturing Firm Laworld Inc. manufactures small...

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Problem 2-46 Preparation of Income Statement: Manufacturing Firm Laworld Inc. manufactures small camping tents. Last year, 200,000 tents were made and sold for $60 each. Each tent includes the following costs: Direct materials                                   $18 Direct labor                                           12 Manufacturing overhead                       16   The  only  selling  expenses  were  a  commission  of  $2  per  unit  sold  and  advertising totaling $100,000. Administrative expenses, all fixed, equaled $300,000. There were no beginning or end- ing finished goods inventories. There were no beginning or ending work-in-process inventories. Required: 1.       Calculate the product cost for one tent. Calculate the total product cost for last year. 2.       CONCEPTUAL CONNECTION Prepare an income statement for external users. Did you need to prepare a supporting statement of cost of goods manufactured? Explain. 3.       CONCEPTUAL CONNECTION Suppose 200,000 tents were produced (and 200,000 sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at $40 per unit. The company follows a first-in, first-out policy for its inven- tory (meaning that the units produced first are sold first for purposes of cost flow). What effect does this have on the income statement? Show the new statement.