09 Dec Product versus general, selling, and administrativ
Product versus general, selling, and administrative costsThe following transactions pertain to 2009, the first year operations of Lepper Company. All inventory was started and completed during 2009. Assume that all transactions are cash transactions.1. Acquired $2,360 cash by issuing common stock.2. Paid $720 for materials used to produce inventory.3. Paid $1,800 to production workers.4. Paid $540 rental fee for production equipment.5. Paid $180 to administrative employees.6. Paid $144 rental fee for administrative office equipment.7. Produced 300 units of inventory of which 200 units were sold at a price of $12 each.RequiredPrepare an income statement, balance sheet, and statement of cash flows.