Best Bakery produces and sells cakes and muffins. There are three different flavour of muffin, chocolate,...

  

Transcribed Image Text:

Best Bakery produces and sells cakes and muffins. There are three different flavour of muffin, chocolate, vanilla and banana. The company sells the muffin with packaging of 3 unit's price $10.50 per pack. During March, the bakery produce 6,000 packs and 5,850 packs were sold. The owner of the bakery is Julia. The bakery employs part time worker to bake and fill orders. There is one supervisor name Maria. The company maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on weekly as well as a monthly basis. A janitor is hired to clean the place early each morning. Cleaning supplies are used by the janitor, as well as the staff, to wipe counters, wash cooking equipment, and so on. The bakery is leased from a local real estate company, it has no seating capacity. All orders are filled on a cash basis. Maria schedules work and opens the bakery shop. Julia counts the cash, advertises, and responsible for hiring and firing. The following costs were incurred during March: Flour and sugar Other ingredients Flavor Wrappers, bags, and condiment packages Office rental Items Part-time employees' wages Julia's salary Utilities Factory Rental Depreciation-cooking equipment and fixtures Advertising Janitor's wages APU Diploma AAQS005-4-2-CA Janitorial supplies Accounting fees Taxes Maria's salary Cost $ 6,500 1,200 2,050 2,800 1,600 10,250 3,500 1,750 3,000 1,600 1,500 1,200 Asia Pacific University of Technology and Innovatio INDIVIDUAL ASSIGNMENT 500 2,500 3,000 2,500 The company's accountant, Alice, does the bookkeeping, handles payroll, and files all necessary taxes. To simplify accounting for costs, Alice assumed that all part time employees are production employees and that Julia's salary is selling and administrative expense. She further assumed that all rent and depreciation expense on the building and fixtures are part of product cost. Finally, she decided to put all taxes into one category, taxes, and to treat them as administrative expense. Required: a) b) c) d) Prepare the table as following to classify the costs. Item Eg: Flour and Sugar Direct materials Direct Labour $ 4,500 TOTAL $4,500 Overhead (20 marks) Selling and administrative Compute total production cost and production cost per unit for the month of March. (Round up the answer into two decimals) Prepare the absorption-costing income statement for the month of March. Prepare the marginal-costing income statement for the month of March. (5 marks) (10 marks) (10 marks) Best Bakery produces and sells cakes and muffins. There are three different flavour of muffin, chocolate, vanilla and banana. The company sells the muffin with packaging of 3 unit's price $10.50 per pack. During March, the bakery produce 6,000 packs and 5,850 packs were sold. The owner of the bakery is Julia. The bakery employs part time worker to bake and fill orders. There is one supervisor name Maria. The company maintains a pool of part-time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on weekly as well as a monthly basis. A janitor is hired to clean the place early each morning. Cleaning supplies are used by the janitor, as well as the staff, to wipe counters, wash cooking equipment, and so on. The bakery is leased from a local real estate company, it has no seating capacity. All orders are filled on a cash basis. Maria schedules work and opens the bakery shop. Julia counts the cash, advertises, and responsible for hiring and firing. The following costs were incurred during March: Flour and sugar Other ingredients Flavor Wrappers, bags, and condiment packages Office rental Items Part-time employees' wages Julia's salary Utilities Factory Rental Depreciation-cooking equipment and fixtures Advertising Janitor's wages APU Diploma AAQS005-4-2-CA Janitorial supplies Accounting fees Taxes Maria's salary Cost $ 6,500 1,200 2,050 2,800 1,600 10,250 3,500 1,750 3,000 1,600 1,500 1,200 Asia Pacific University of Technology and Innovatio INDIVIDUAL ASSIGNMENT 500 2,500 3,000 2,500 The company's accountant, Alice, does the bookkeeping, handles payroll, and files all necessary taxes. To simplify accounting for costs, Alice assumed that all part time employees are production employees and that Julia's salary is selling and administrative expense. She further assumed that all rent and depreciation expense on the building and fixtures are part of product cost. Finally, she decided to put all taxes into one category, taxes, and to treat them as administrative expense. Required: a) b) c) d) Prepare the table as following to classify the costs. Item Eg: Flour and Sugar Direct materials Direct Labour $ 4,500 TOTAL $4,500 Overhead (20 marks) Selling and administrative Compute total production cost and production cost per unit for the month of March. (Round up the answer into two decimals) Prepare the absorption-costing income statement for the month of March. Prepare the marginal-costing income statement for the month of March. (5 marks) (10 marks) (10 marks)