(a) Fill in the third column of the above chart by identifying whether each cost item...

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(a) Fill in the third column of the above chart by identifying whether each cost item should be initially recorded as an asset or as an expense. (b) Fill in the fourth column of the chart by recognizing, if each item is considered to be inventoriable (product) cost or not. Transaction Description Advertising Amount Initially an Asset or Expense Product Cost? $12,000 Expense No Flour, eggs, sugar 317,000 Asset Yes Depreciation on baking equipment and kitchen 46,000 Asset Yes Delivery expense 9,100 Expense No Wages (baking employees) 391,000 Asset Yes Research and development 5,200 Expense No Utilities for bakery space 22,000 Asset Yes Investment in mutual fund 57,000 Asset No Cash proceeds from loan 52,000 Asset No Wages (indirect labor) 43,000 Asset Yes Salaries (executives and office staff) 119,000 Expense No eTextbook and Media Assistance Used Attempts: 1 of 3 used (c) Your answer is correct. Beginning and ending balances for several accounts for Pearl's Danishes are as follows. Prepare a schedule of COGM and COGS in good form. Utilize relevant information as needed. Beginning Balance Ending Balance Cash $39,000 $53,000 DM Inventory 50,000 29,000 WIP Inventory 2,900 1,900 FG Inventory 38,000 26,000 Investments 155,000 222,000 Beginning Direct Materials Inventory $ 50000 Purchases of Direct Materials Direct Materials Available For Use 317000 367000 Less Ending Direct Materials Inventory 29000 i Direct Materials Used Direct Labor Manufacturing Overhead Depreciation Utilities Wages Total Manufacturing Costs Add Beginning WIP Inventory Less Ending WIP Inventory Cost of Goods Manufactured Add Beginning Finished Goods Inventory Less Ending Finished Goods Inventory Cost of Goods Sold 46000 22000 43000 338000 391000 111000 840000 2900 1900 841000 38000 26000 853000 (e) As it turns out, total sales for the year were $1,064,000. What is the amount of this year's gross margin percentage? (Round gross margin percentage to 1 decimal place, e.g. 15.2%.) Gross margin percentage % Would William be excited about this year's gross margin percentage? What trend in sales might the company expect next year as a result of this year's catering contract? in sales eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d) Your Answer Correct Answer Your answer is correct. Given the costs you just calculated and recognizing that the company typically sets its selling prices at 130% of its product costs, what level of sales would William have expected? What gross margin percentage would this generate? (Round gross margin percentage to 1 decimal place, e.g. 15.2%.) Expected sales revenue $ Gross margin percentage eTextbook and Media Solution 1,108,900 23.1 % Expected sales revenue = $853,000 1.3 = $1,108,900 GM% = (Sales - COGS) + Sales GM% - ($1,108,900-$853,000) +$1,108,900 = 23.1% Assistance Used Assistance Used Attempts: 3 of 3 used (a) Fill in the third column of the above chart by identifying whether each cost item should be initially recorded as an asset or as an expense. (b) Fill in the fourth column of the chart by recognizing, if each item is considered to be inventoriable (product) cost or not. Transaction Description Advertising Amount Initially an Asset or Expense Product Cost? $12,000 Expense No Flour, eggs, sugar 317,000 Asset Yes Depreciation on baking equipment and kitchen 46,000 Asset Yes Delivery expense 9,100 Expense No Wages (baking employees) 391,000 Asset Yes Research and development 5,200 Expense No Utilities for bakery space 22,000 Asset Yes Investment in mutual fund 57,000 Asset No Cash proceeds from loan 52,000 Asset No Wages (indirect labor) 43,000 Asset Yes Salaries (executives and office staff) 119,000 Expense No eTextbook and Media Assistance Used Attempts: 1 of 3 used (c) Your answer is correct. Beginning and ending balances for several accounts for Pearl's Danishes are as follows. Prepare a schedule of COGM and COGS in good form. Utilize relevant information as needed. Beginning Balance Ending Balance Cash $39,000 $53,000 DM Inventory 50,000 29,000 WIP Inventory 2,900 1,900 FG Inventory 38,000 26,000 Investments 155,000 222,000 Beginning Direct Materials Inventory $ 50000 Purchases of Direct Materials Direct Materials Available For Use 317000 367000 Less Ending Direct Materials Inventory 29000 i Direct Materials Used Direct Labor Manufacturing Overhead Depreciation Utilities Wages Total Manufacturing Costs Add Beginning WIP Inventory Less Ending WIP Inventory Cost of Goods Manufactured Add Beginning Finished Goods Inventory Less Ending Finished Goods Inventory Cost of Goods Sold 46000 22000 43000 338000 391000 111000 840000 2900 1900 841000 38000 26000 853000 (e) As it turns out, total sales for the year were $1,064,000. What is the amount of this year's gross margin percentage? (Round gross margin percentage to 1 decimal place, e.g. 15.2%.) Gross margin percentage % Would William be excited about this year's gross margin percentage? What trend in sales might the company expect next year as a result of this year's catering contract? in sales eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d) Your Answer Correct Answer Your answer is correct. Given the costs you just calculated and recognizing that the company typically sets its selling prices at 130% of its product costs, what level of sales would William have expected? What gross margin percentage would this generate? (Round gross margin percentage to 1 decimal place, e.g. 15.2%.) Expected sales revenue $ Gross margin percentage eTextbook and Media Solution 1,108,900 23.1 % Expected sales revenue = $853,000 1.3 = $1,108,900 GM% = (Sales - COGS) + Sales GM% - ($1,108,900-$853,000) +$1,108,900 = 23.1% Assistance Used Assistance Used Attempts: 3 of 3 used