ACC202 WEEK 1 ASSIGNMENT 1 AND 2

ACC202 Week 1 E10-3 E10-6 E11-1 E11-6 E11-15 P10-20 P11-21 P11-25 P11-28

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.  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   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.    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 Problem 10- 20 Effect of product versus period costs on financial statements Hoen Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, all transactions are cash transactions. CONT… Problem 11- 21 Identifying cost behavior Identify the following costs as fixed or variable. Costs related to plane trips between Seattle, Washington, and Orlando, Florida, follow. Pilots are paid on a per trip basis. CONT… Problem 11- 25 Effects of operating leverage on profitability Webster Training Services ( WTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients’ offices on the clients’ equipment. The only major expense WTS incurs is instructor salaries; it pays instructors $ 5,000 per course taught. WTS recently agreed to offer a course of instruction to the employees of Chambers Incorporated at a price of $ 400 per student. Chambers estimated that 20 students would attend the course. Base your answer on the preceding information. CONT… Problem 11- 28 Determining the break- even point and preparing a contribution margin income statement Inman Manufacturing Company makes a product that it sells for $ 60 per unit. The company incurs variable manufacturing costs of $ 24 per unit. Variable selling expenses are $ 12 per unit, annual fixed manufacturing costs are $ 189,000, and fixed selling and administrative costs are $ 141,000 per year. CONT…