# P18-31A Preparing an income statement and calculating unit cost for a serviceg Objectives 3, 5companyThe Windshield Doctors repair chips in car windshields. The company incurred thefollowing operating costs for the month of March 2018:2. \$37.72Salaries and wages\$ 12,000Windshield repair materials4,600Depreciation on truck300Depreciation on building and equipment1,200Supplies used300Utilities460The Windshield Doctors earned \$23,000 in service revenues for the month of Marchby repairing 500 windshields. All costs shown are considered to be directly related tothe repair service.Requirements1. Prepare an income statement for the month of March.2. Compute the cost per unit of repairing one windshield.3. The manager of Windshield Doctors must keep unit operating cost below \$50 perwindshield in order to get his bonus. Did he meet the goal?

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Requirement 1

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Step 1

Income statement is prepared by listing all revenues and expenses and then deriving resulting profit /loss by subtracting all the expenses from the sum of revenues.

Step 2

1. The income statement has be...

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