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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Asked Jan 12, 2020
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Requirement 1 

P18-31A Preparing an income statement and calculating unit cost for a service
g Objectives 3, 5
company
The Windshield Doctors repair chips in car windshields. The company incurred the
following operating costs for the month of March 2018:
2. $37.72
Salaries and wages
$ 12,000
Windshield repair materials
4,600
Depreciation on truck
300
Depreciation on building and equipment
1,200
Supplies used
300
Utilities
460
The Windshield Doctors earned $23,000 in service revenues for the month of March
by repairing 500 windshields. All costs shown are considered to be directly related to
the repair service.
Requirements
1. 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 per
windshield in order to get his bonus. Did he meet the goal?
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P18-31A Preparing an income statement and calculating unit cost for a service g Objectives 3, 5 company The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of March 2018: 2. $37.72 Salaries and wages $ 12,000 Windshield repair materials 4,600 Depreciation on truck 300 Depreciation on building and equipment 1,200 Supplies used 300 Utilities 460 The Windshield Doctors earned $23,000 in service revenues for the month of March by repairing 500 windshields. All costs shown are considered to be directly related to the repair service. Requirements 1. 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 per windshield in order to get his bonus. Did he meet the goal?

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Expert Answer

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...

Accounting homework question answer, step 2, image 1
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