AutoSave '0 i Sign in E File Horne Insert Draw Design Layout References Mailings Review View Help Grammarly B Share 5' Comments I 7 7 V l A PART 3: Business Transactions (Chapter 4-) I Jamie spent the month of December talking to various suppliers _i_r_i__g_r_g_e[_tg determine er cost structure. She has presented cost data information in Table 1. TABLE 1: COST INFORMATION Item and Ingredients Cost Standard per Cake Conventional oven $6,000 (depreciated over nla 5 years on a BL basis; no salvage value) Refrigerator $0 (provided by landlord) Baking pans, licenses $0 (paid for by dad) nla Baking our $24 per 8 pounds bag 1 pound Eggs $2 per dozen 4 eggs Sugar $15 per 25 pounds bag 1 pound Baking soda $6 per 14 pounds box Butter $6.50 per 4 pounds 1 pound Raisins $8 per 2 pounds '/2 pound Others (currants, diced $30 for all 4 boxes per date, nutmeg, molasses) month Cash Register $12 per month (rental for 2 years Rum (alcohol) $12 per bottle '/4 ggrof bottle Utilities (includes gas, $50 per month electric, and water) Mobile phone (business) $50 per month Salary Jamie $500 per month Salary nieces $8 per hour 1 person 1.5 hours per cake Salary aunt $100 per month Pageof'l 1579 words II} In: Focus E E3 7 I + 99% E: ,0 Type here to search 0 ii g :1 e I a a I a a a Q '1 A :' 92:23; E AutoSave ' Sign in E File Horne Insert Draw Design Layout References Mailings Review View Help Grammarly B Share 5' Comments Accountant $100 per month Estimated MOH $4.00 per cake J&J Bakery Inc. opened for business on January 1, Q as planned. During the month of January, the business purchased and used 200 pounds of our, 200 pounds of sugar, 67 dozen eggs, 20 baking soda boxes, 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four) all from one supplier on account. Manufacturing overhead is applied during production of the cakes at a rate of $4.00 per cake. Jamie purchased the oven using the start-up capital and paid all salaries. Her nieces worked 300 hours in total for the month. January was a very good month for the bakery since it baked 200 cakes and sold all for cash. The average selling price was $50 per cake. All manufacturing overhead is closed out at month end by making the appropriate journal entry to the Cost of Goods Sold Account. The supplier was paid at month end. Required: Document J&J Bakery Inc. January transactions using T-accounts (round all calculations to 2 decimal places). All other costs such as utilities, must be accounted for in the T-accounts - presume such transactions where applicable, are paid in cash. v Page 7 of 7 1579 words [El ID: Focus 59' 7 I + 99% E: /O Typeheretosearch 0 El g E e I a a I a a Q 3 A :' 9:335:31 D