1. What is the average cost of goods manufactured per unit in 2016?

2.What is the total Cost of Goods Sold in 2016?

3.What is the Net Income for Mutt Butter in 2016?

4.At the end of the year, Mutt Butter received a call that the kitchen facility found an additional 100 oz. package of peanut butter that cost $100. This discovery increased the ending balance of peanut butter in 2016 to $700. Assuming all else equal, how would this discovered error in the ending balance of Peanut Butter change the Cost of Goods Sold?

a. Decrease COGS by $83.33  

b. Increase COGS by $83.33 

c. Decrease COGS by $100 

d. Increase COGS by $100

5.YES/NO: Julia is considering hiring a chef for production while she becomes a residual claimant and does not draw a salary. The chef has agreed to take on the job for a fixed salary of $3,000 a year plus a bonus if cost of goods manufactured per unit decreases by $0.20 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of peanut butter, the cost per oz. of nutrient mix, the cost per cup, and the rent remain the same, will the new chef earn a bonus if the chef produces 3,000 1.5 oz. servings?

6..YES/NO:Julia is considering hiring a chef for production while she becomes a residual claimant and does not draw a salary. The chef has agreed to take on the job for a fixed salary of $3,000 a year plus a bonus if cost of goods manufactured per unit decreases by $0.20 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of peanut butter, the cost per oz. of nutrient mix, the cost per cup, the rent remain the same, will the new chef earn a bonus if the chef produces 4,000 1.5 oz. servings?

7..YES/NO: Suppose the chef has agreed to take on the job for a fixed salary of $3,000 a year plus a bonus if the variable cost of goods manufactured per unit decreases by $0.20 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of peanut butter, the cost per oz. of nutrient mix, the cost per cup, the rent remain the same, will the new chef earn a bonus if the chef produces 3,000 1.5 oz. servings?

8. YES/NO: Suppose the chef has agreed to take on the job for a fixed salary of $3,000 a year plus a bonus if the variable cost of goods manufactured per unit decreases by $0.20 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of peanut butter, the cost per oz. of nutrient mix, the cost per cup, the rent remain the same, will the new chef earn a bonus if the chef produces 4,000 1.5 oz. servings?

9. Although Julia was committed to pay for 25 days to use the kitchen, she only used 20 days. What would happen to the total Cost off Goods Manufactured in 2016 if she were to sublet those 5 days to another chef for $750.

a. Total COGM would increase by $750.

b. Total COGM would decrease by $750.

c. Total COGM would not change.

d. Total COGM would increase by $625

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Mutt Butter, is an emerging company that manufactures and sells peanut butter treats for dogs. Mutt Butter includes two ingredients: peanut butter, and added nutrient powder. The ratio of Peanut Butter to nutrient powder if 2:1. To make Mutt Butter, the ingredients are mixed in a food processor. Mutt Butter is packaged in 1.5 oz single-serve cups. Julia is the chef of Mutt Butter and her sole role is to make the Mutt Butter. Mutt Butter is made in a commercial kitchen that Mutt Butter rents for a contracted 25 days a year at rate of $3,750 per year. That rent includes the utilities and use of the food processor and packaging equipment. The kitchen facility will also store any packaged Mutt Butter and ingredients for free (up to 5,000 1.5 oz cups). Mutt Butter did one production run in 2015. The Ending Balance of inventory at the end of 2015 was as follows: Item Ending Amount Peanut Butter Nutrient Powder 1.5 Oz Cups (with lids) Mutt Butter in Process Finished Mutt Butter (in cups) 200 oz. 400 oz. 500 150 x 1.5 oz. Servings 50 x 1.5 oz. Servings Ending Balance ($) $200 $500 $50 $546 $182 In 2016, Mutt Butter produced 3000 units Mutt Butter and sold 2,500 units of them (3,750 oz.). Mutt Butter uses a LIFO inventory system. The net revenue from the sales was $12,500. During 2016, Mutt Butter incurred the following expenses: Mutt Butter, is an emerging company that manufactures and sells peanut butter treats for dogs. Mutt Butter includes two ingredients: peanut butter, and added nutrient powder. The ratio of Peanut Butter to nutrient powder if 2:1. To make Mutt Butter, the ingredients are mixed in a food processor. Mutt Butter is packaged in 1.5 oz single-serve cups. Julia is the chef of Mutt Butter and her sole role is to make the Mutt Butter. Mutt Butter is made in a commercial kitchen that Mutt Butter rents for a contracted 25 days a year at rate of $3,750 per year. That rent includes the utilities and use of the food processor and packaging equipment. The kitchen facility will also store any packaged Mutt Butter and ingredients for free (up to 5,000 1.5 oz cups). Mutt Butter did one production run in 2015. The Ending Balance of inventory at the end of 2015 was as follows: Item Ending Amount Peanut Butter Nutrient Powder 1.5 Oz Cups (with lids) Mutt Butter in Process Finished Mutt Butter (in cups) 200 oz. 400 oz. 500 150 x 1.5 oz. Servings 50 x 1.5 oz. Servings Ending Balance ($) $200 $500 $50 $546 $182 In 2016, Mutt Butter produced 3000 units Mutt Butter and sold 2,500 units of them (3,750 oz.). Mutt Butter uses a LIFO inventory system. The net revenue from the sales was $12,500. During 2016, Mutt Butter incurred the following expenses:

Answer rating: 100% (QA)

Cost of Peanut Butter Nutrient Paowder and 15 OZ cups used in manufacturing Mutt Butter is calculate... View the full answer