Vista Design is an interior design firm. The firm uses a job cost system in which each client is a different​ "job."Vista Design traces direct​ labor, licensing​ costs, and travel costs directly to each job​ (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs

At the beginning of the current​ year, managing partner Brenna Gladstone prepared the following​ budget:

Later that same year in​ November, Vista Design served several clients. Records for two clients appear​ here:

Requirement 1. Compute Vista Design's predetermined indirect cost allocation rate for the current year.

Identify the​ formula, then compute the rate. ​(Enter the result as a whole​ number.)

Requirement 2. Compute the total cost of each of the two jobs listed.

First enter in the direct costs for each​ job, then enter in the indirect costs and total cost for the jobs. ​(Complete all answer boxes. For accounts with no​ balance, make sure to enter​ "0" in the appropriate cell. Enter percentage amounts as a whole number. Round your answers to the nearest whole​ dollar.)

Requirement 3 If Vista Design wants to earn profits equal to 30​% of sales​ revenue, how much​ (what total​ fee) should the company charge each of these two​ clients?

Identify the formula then determine the amount Vista Design should charge these clients. ​(Round your answers to the nearest whole​ dollar.)

Requirement 4. Why does

Vista Design assign costs to​ jobs?

Vista Design assigns costs to jobs to help the company ▼(increase labor hours,lower employee wages,set fees) that cover all costs and contribute to profit. Assigning costs to

▼

(a grouping of clients, individual clients) also can help Vista Design control costs.

Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2016:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

Feedback

2. Assuming that the March 1 work in process inventory includes $19,200 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent.

2.
What would be the amount of loss (profit) per unit if Garner sells to Cheap at $700 per unit? (Do not round your intermediate calculations. Loss amounts should be indicated with a minus sign. Round your answer to 2 decimal places.) SHOW ALL WORK

3.

What is the amount of loss (profit) per unit at the $792.59 selling price per unit for units sold to SC? (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) SHOW ALL WORK

Problem 23-5A

The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017.

1. Sales for May are expected to be $803,000. Sales in June and July are expected to be 5% higher than the preceding month.
2. Cost of goods sold is expected to be 75% of sales.
3. Company policy is to maintain ending merchandise inventory at 10% of the following month’s cost of goods sold.
4. Operating expenses are estimated to be as follows:

Sales salaries $30,000 per month
Advertising 6 % of monthly sales
Delivery expense 2 % of monthly sales
Sales commissions 5 % of monthly sales
Rent expense $5,390 per month
Depreciation $910 per month
Utilities $710 per month
Insurance $560 per month

5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes.

[Partially correct answer.] Your answer is partially correct. Try again.

Prepare the merchandise purchases budget for each month in columnar form. (Round answers to 0 decimal places, e.g. 5,275.)

SUPPAR COMPANY
San Miguel Store
Merchandise Purchases Budget
[Entry field with correct answer]

For the Quarter Ended June, 2017
May and June, 2017
For the Months of May and June, 2017
May
June
[Entry field with correct answer]

Total
Direct Materials per Unit
Beginning Direct Materials
Total Materials Required
Units to be Produced
Budgeted Cost of Goods Sold
Beginning Merchandise Inventory
Desired Ending Direct Materials
Desired Ending Merchandise Inventory
Direct Materials Purchases
Required Merchandise Purchases
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]
[Entry field with correct answer]

Add
Less
:
[Entry field with correct answer]

Direct Materials per Unit
Desired Ending Direct Materials
Required Merchandise Purchases
Direct Materials Purchases
Total
Desired Ending Merchandise Inventory
Total Materials Required
Units to be Produced
Beginning Direct Materials
Beginning Merchandise Inventory
Budgeted Cost of Goods Sold
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Direct Materials Purchases
Desired Ending Direct Materials
Direct Materials per Unit
Required Merchandise Purchases
Budgeted Cost of Goods Sold
Beginning Merchandise Inventory
Beginning Direct Materials
Total
Total Materials Required
Desired Ending Merchandise Inventory
Units to be Produced
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Add
Less
:
[Entry field with correct answer]

Total Materials Required
Total
Budgeted Cost of Goods Sold
Direct Materials per Unit
Desired Ending Direct Materials
Units to be Produced
Direct Materials Purchases
Beginning Direct Materials
Required Merchandise Purchases
Beginning Merchandise Inventory
Desired Ending Merchandise Inventory
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Direct Materials Purchases
Required Merchandise Purchases
Total
Total Materials Required
Units to be Produced
Beginning Direct Materials
Beginning Merchandise Inventory
Direct Materials per Unit
Budgeted Cost of Goods Sold
Desired Ending Direct Materials
Desired Ending Merchandise Inventory
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]

LINK TO TEXT

[Partially correct answer.] Your answer is partially correct. Try again.

Prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the details of cost of goods sold. (Round answers to 0 decimal places, e.g. 5,275.)

SUPPAR COMPANY
San Miguel Store
Budgeted Income Statement
[Entry field with correct answer]

For the Months of May and June, 2017
May and June, 2017
For the Quarter Ended June, 2017
May
June
[Entry field with correct answer]

Advertising
Gross Profit
Depreciation
Income Before Income Taxes
Beginning Inventory
Cost of Goods Available for Sale
Purchases
Income from Operations
Interest Expense
Rent
Sales Commissions
Sales
Sales Salaries
Income Tax Expense
Total Operating Expenses
Utilities
Cost of Goods Sold
Ending Inventory
Delivery
Insurance
Net Income / (Loss)
Operating Expenses
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]
[Entry field with correct answer]

Income from Operations
Ending Inventory
Sales Commissions
Total Operating Expenses
Beginning Inventory
Income Tax Expense
Delivery
Cost of Goods Available for Sale
Cost of Goods Sold
Advertising
Insurance
Net Income / (Loss)
Rent
Operating Expenses
Purchases
Utilities
Gross Profit
Sales Salaries
Depreciation
Sales
Income Before Income Taxes
Interest Expense
[Entry field with correct answer]
    
Income Tax Expense    
Beginning Inventory    
Cost of Goods Sold    
Operating Expenses    
Delivery    
Depreciation    
Rent    
Utilities    
Sales Salaries    
Purchases    
Ending Inventory    
Income Before Income Taxes    
Gross Profit    
Insurance    
Interest Expense    
Advertising    
Cost of Goods Available for Sale    
Income from Operations    
Net Income / (Loss)    
Sales    
Sales Commissions    
Total Operating Expenses    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Delivery    
Income from Operations    
Utilities    
Cost of Goods Available for Sale    
Sales Salaries    
Income Before Income Taxes    
Income Tax Expense    
Operating Expenses    
Depreciation    
Gross Profit    
Advertising    
Ending Inventory    
Interest Expense    
Beginning Inventory    
Insurance    
Purchases    
Cost of Goods Sold    
Net Income / (Loss)    
Rent    
Sales    
Sales Commissions    
Total Operating Expenses    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Depreciation    
Delivery    
Cost of Goods Available for Sale    
Interest Expense    
Income from Operations    
Sales Commissions    
Total Operating Expenses    
Net Income / (Loss)    
Operating Expenses    
Beginning Inventory    
Income Before Income Taxes    
Ending Inventory    
Income Tax Expense    
Advertising    
Cost of Goods Sold    
Insurance    
Sales Salaries    
Rent    
Gross Profit    
Purchases    
Sales    
Utilities    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Purchases    
Beginning Inventory    
Depreciation    
Gross Profit    
Total Operating Expenses    
Income from Operations    
Insurance    
Ending Inventory    
Income Tax Expense    
Net Income / (Loss)    
Operating Expenses    
Cost of Goods Available for Sale    
Rent    
Sales    
Sales Commissions    
Cost of Goods Sold    
Sales Salaries    
Delivery    
Utilities    
Income Before Income Taxes    
Interest Expense    
Advertising    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Insurance    
Income Tax Expense    
Total Operating Expenses    
Net Income / (Loss)    
Utilities    
Operating Expenses    
Income from Operations    
Gross Profit    
Ending Inventory    
Purchases    
Income Before Income Taxes    
Depreciation    
Sales    
Delivery    
Rent    
Sales Commissions    
Sales Salaries    
Interest Expense    
Advertising    
Beginning Inventory    
Cost of Goods Available for Sale    
Cost of Goods Sold    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Gross Profit
Beginning Inventory
Utilities
Income Before Income Taxes
Rent
Cost of Goods Available for Sale
Advertising
Ending Inventory
Depreciation
Interest Expense
Cost of Goods Sold
Income from Operations
Purchases
Operating Expenses
Delivery
Net Income / (Loss)
Income Tax Expense
Sales
Insurance
Sales Commissions
Sales Salaries
Total Operating Expenses
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Income Tax Expense
Net Income / (Loss)
Beginning Inventory
Total Operating Expenses
Ending Inventory
Sales Salaries
Cost of Goods Sold
Insurance
Operating Expenses
Interest Expense
Depreciation
Gross Profit
Sales
Sales Commissions
Rent
Income from Operations
Advertising
Utilities
Delivery
Cost of Goods Available for Sale
Purchases
Income Before Income Taxes
[Entry field with correct answer]
    
Total Operating Expenses    
Utilities    
Ending Inventory    
Income Before Income Taxes    
Purchases    
Income Tax Expense    
Sales Commissions    
Rent    
Beginning Inventory    
Gross Profit    
Interest Expense    
Delivery    
Sales Salaries    
Income from Operations    
Advertising    
Cost of Goods Available for Sale    
Depreciation    
Cost of Goods Sold    
Insurance    
Sales    
Net Income / (Loss)    
Operating Expenses    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Purchases    
Interest Expense    
Income from Operations    
Cost of Goods Available for Sale    
Advertising    
Total Operating Expenses    
Beginning Inventory    
Income Tax Expense    
Operating Expenses    
Delivery    
Cost of Goods Sold    
Depreciation    
Utilities    
Rent    
Ending Inventory    
Net Income / (Loss)    
Sales Commissions    
Gross Profit    
Sales    
Insurance    
Sales Salaries    
Income Before Income Taxes    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Sales Commissions    
Total Operating Expenses    
Purchases    
Rent    
Delivery    
Interest Expense    
Utilities    
Cost of Goods Sold    
Depreciation    
Income from Operations    
Sales    
Income Tax Expense    
Income Before Income Taxes    
Advertising    
Sales Salaries    
Insurance    
Gross Profit    
Beginning Inventory    
Cost of Goods Available for Sale    
Ending Inventory    
Net Income / (Loss)    
Operating Expenses    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Cost of Goods Available for Sale    
Cost of Goods Sold    
Sales Salaries    
Delivery    
Total Operating Expenses    
Depreciation    
Beginning Inventory    
Interest Expense    
Ending Inventory    
Income Tax Expense    
Advertising    
Utilities    
Gross Profit    
Income from Operations    
Operating Expenses    
Purchases    
Net Income / (Loss)    
Insurance    
Rent    
Sales    
Income Before Income Taxes    
Sales Commissions    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Advertising    
Total Operating Expenses    
Rent    
Cost of Goods Sold    
Sales Salaries    
Sales    
Depreciation    
Delivery    
Gross Profit    
Income from Operations    
Purchases    
Income Tax Expense    
Net Income / (Loss)    
Operating Expenses    
Cost of Goods Available for Sale    
Utilities    
Sales Commissions    
Insurance    
Interest Expense    
Beginning Inventory    
Income Before Income Taxes    
Ending Inventory    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Sales    
Operating Expenses    
Depreciation    
Total Operating Expenses    
Net Income / (Loss)    
Insurance    
Sales Commissions    
Advertising    
Ending Inventory    
Purchases    
Delivery    
Sales Salaries    
Utilities    
Gross Profit    
Income Before Income Taxes    
Beginning Inventory    
Rent    
Interest Expense    
Cost of Goods Available for Sale    
Income from Operations    
Cost of Goods Sold    
Income Tax Expense    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Ending Inventory    
Gross Profit    
Sales Commissions    
Net Income / (Loss)    
Rent    
Sales    
Sales Salaries    
Total Operating Expenses    
Cost of Goods Available for Sale    
Operating Expenses    
Insurance    
Income Tax Expense    
Utilities    
Interest Expense    
Advertising    
Income Before Income Taxes    
Cost of Goods Sold    
Beginning Inventory    
Delivery    
Depreciation    
Income from Operations    
Purchases    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Advertising    
Net Income / (Loss)    
Beginning Inventory    
Cost of Goods Available for Sale    
Cost of Goods Sold    
Sales Commissions    
Sales Salaries    
Utilities    
Ending Inventory    
Income from Operations    
Total Operating Expenses    
Sales    
Income Before Income Taxes    
Gross Profit    
Delivery    
Income Tax Expense    
Depreciation    
Insurance    
Interest Expense    
Operating Expenses    
Purchases    
Rent    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]
    
Delivery    
Depreciation    
Insurance    
Advertising    
Net Income / (Loss)    
Ending Inventory    
Operating Expenses    
Purchases    
Gross Profit    
Beginning Inventory    
Utilities    
Income from Operations    
Rent    
Income Tax Expense    
Sales Salaries    
Sales    
Sales Commissions    
Cost of Goods Available for Sale    
Total Operating Expenses    
Interest Expense    
Income Before Income Taxes    
Cost of Goods Sold    
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with correct answer]

Cost of Goods Available for Sale
Net Income / (Loss)
Income from Operations
Utilities
Operating Expenses
Delivery
Income Before Income Taxes
Purchases
Depreciation
Interest Expense
Total Operating Expenses
Income Tax Expense
Rent
Advertising
Beginning Inventory
Insurance
Cost of Goods Sold
Ending Inventory
Gross Profit
Sales
Sales Commissions
Sales Salaries
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]

Income Before Income Taxes
Rent
Cost of Goods Sold
Sales Commissions
Net Income / (Loss)
Advertising
Delivery
Interest Expense
Sales Salaries
Sales
Beginning Inventory
Depreciation
Total Operating Expenses
Income Tax Expense
Income from Operations
Cost of Goods Available for Sale
Ending Inventory
Gross Profit
Utilities
Operating Expenses
Insurance
Purchases
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]

Net Income / (Loss)
Rent
Operating Expenses
Purchases
Depreciation
Sales
Utilities
Beginning Inventory
Income Before Income Taxes
Insurance
Sales Commissions
Sales Salaries
Ending Inventory
Total Operating Expenses
Interest Expense
Cost of Goods Available for Sale
Cost of Goods Sold
Delivery
Gross Profit
Advertising
Income from Operations
Income Tax Expense
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]

Advertising
Gross Profit
Beginning Inventory
Net Income / (Loss)
Ending Inventory
Operating Expenses
Delivery
Depreciation
Income from Operations
Sales Commissions
Cost of Goods Available for Sale
Insurance
Purchases
Rent
Cost of Goods Sold
Income Tax Expense
Sales
Sales Salaries
Total Operating Expenses
Utilities
Income Before Income Taxes
Interest Expense
[Entry field with incorrect answer]
[Entry field with incorrect answer]
[Entry field with incorrect answer]

Utilities
Beginning Inventory
Gross Profit
Interest Expense
Total Operating Expenses
Income from Operations
Cost of Goods Available for Sale
Income Before Income Taxes
Net Income / (Loss)
Advertising
Sales Commissions
Sales Salaries
Sales
Cost of Goods Sold
Delivery
Income Tax Expense
Depreciation
Ending Inventory
Insurance
Operating Expenses
Purchases
Rent
$
[Entry field with incorrect answer]
$
[Entry field with incorrect answer]

2.

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies.

For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $31,000 to buy from manufacturers):

Required:

1.

Compute the total revenue that Worley would receive from University and Memorial.

2.

Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals.

The balance in the account Work in Process—Filling was as follows on January 1:

The following costs were charged to Work in Process—Filling during January:

During January, 43,500 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,800 units, 40% completed.

Required:

1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments- Molding and Fabrication. It started, completed, and sold only two jobs during March- Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q ( all data and questions relate to the month of March):

Molding Fabrication Total

Estimated total machine-hours used 2,500 1,500 4,000

Estimated total fixed manufacturing overhead 10,000 15,000 25,000

Estimated variable manufacturing overhead per machine-hour 1.40 2.20

Job P Job Q

Direct materials 13,000 8,000

Direct labor cost 21,000 7,500

Actual machine-hours used:

Molding 1,700 800

Fabrication 600 900

Total 2,300 1,700

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine- hours as the allocation base in both departments.  

1. What was the company's plantwide predetermined overhead rate?

2. How much manufacturing overhead was applied to Job P and how much was applied to job Q?

3. What was the total manufacturing cost assigned to Job P?

4. If Job P included 20 units, what was its unit product cost?

5. What was the total manufacturing cost assigned to Job Q?

6. If Job Q included 30 units, what was its unit product cost?

7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?

8. What was Sweeten Company's cost of goods sold for March?

9. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department?

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

11. How much manufacturing overhead was applied from the fabrication Department to Job P and how much was applied to Job Q?

Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and financial accounting are. He’s also wondering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information.

Managerial vs. Financial

Select whether the following characteristics are most often associated with managerial accounting or financial accounting.

Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

(Select "Yes" or "No" from the below dropdowns.)

harles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B, and balance sheets C and D. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie Company.

Income Statement A

Income Statement B

Balance Sheet C

Balance Sheet D

Which income statement is most appropriate for a manufacturing business?

Income statement A

Which balance sheet is most appropriate for a manufacturing business?

Balance sheet D

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and financial accounting are. He’s also wondering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information.

Managerial vs. Financial

Select whether the following characteristics are most often associated with managerial accounting or financial accounting.

Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

(Select "Yes" or "No" from the below dropdowns.)

harles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B, and balance sheets C and D. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie Company.

Income Statement A

Income Statement B

Balance Sheet C

Balance Sheet D

Which income statement is most appropriate for a manufacturing business?

Income statement A

Which balance sheet is most appropriate for a manufacturing business?

Balance sheet D

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

firm charges a fixed price of £80 for each shirt sold. The firm has a total cost function: TC = Q3 – 136Q. (a) Write down the equation of the total revenue function. (b) Determine the break-even point.