Lovvern Trophies makes and sell trophies it distributes to little league ballplayers. The company normally produces and sells between

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10-3) Classifying cost:product or G, S, and A/assets or expense

Use the following format to classify each cost as a product cost or a general,selling and administrative (G,S &A)cost, Also indicate whether the cost would be recorded as an asset or an expense. The first item is shown as an example

10-6) Identifying product cost in a manufacturing company

Tiffany Crissler was talking to another accounting student; Bill Tyrone. Upon discussing that the accounting department offered an upper level course in cost measurement, Tiffany remarked to Bill, "How difficult can it be?" My parents own a toy store. All you have to do to figure out how much something costs is look at the invoice Surely you don't need an entire course to teach you how to read an invoice.

REQUIRED:

A)Identify the three main componets of products cost for a manufacturing entity B)Explain why measurement product cost for a manufacturing entity is more complex than measuring product cost for a retail toy store C) Assume that Tiffany parents rent store for $7500 per month. Different types of toys use different amount of store space. For example, displaying a bicycle requires more store space than displaying a deck of cards. Also, some toys remain on the shelf longer than others. Fad toys sell quickly, but traditional toys sell more slowly. Under these circumstances, how would you determine the amount of rental cost required to display each type of toy? Identify two other costs incurred by a toy store that may be difficult to allocate to individual toys

11-1) Identify cost behaviors

Deer Valley Kitchen, a fast food restaurant company,operates a chain of restaurant across the nation. Each restaurant employs eight people;one is a manager who is paid a salary plus a bonus equal to 3 percent of sales; two cooks, one dishwasher, and four waitresses, are paid salaries. Each manager is budgeted $3000 per month for advertising cost

REQUIRED:

Classify each of the following cost incurred by Deer Valley Kitchen as fixed, variable, or mixed

a) cooks salaries at a particular location relative to the number of customers

b) cost of supplies(cups, plates, spoon, etc.) relative to the numbers of customers

c)managers compensations relative to the number of customers

d)waitresses salaries relative to the numbers of customers for a particular restaurant

e) advertising cost relative to the number of customers for a particular restaurant

f) rental costs relative to the number of restaurant

11-6)Fixed versus variable cost behavior

Lovvern Trophies makes and sell trophies it distributes to little league ballplayers. The company normally produces and sells between 8,000 and 14,000 trophies per year. The following data apply to various activity levels.

REQUIRED:

a)complete the preceding table by fitting in the missing amounts for the level of activity shown in the first row of the table. Round all cost per unit to figures to the nearest whole penny

b)explain why the total cost per trophy decreases as the number of trophies increases

 

11-15) Break-even point

Connor Corporation sells product for $25 each that have variable costs of $13 per unit. Connors annual fixed costs is $264,000

REQUIRED: Determine the break even point in units and dollars

 

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