COST ACCOUNTING

Question #$4.[13$ points$]$

You own a shoe manufacturing company. We make the very best safety shoe in the world However, we are just getting our business started and we only have a few costs to start

These costs include

Building rent $$2,000$ per month

Utilities $-$ Electricity $$200$

One assembly staff paid at $$1000$ per month

One truck driver paid $$550$ per month

Raw material cost per toy came in at $$5\mathrm{.}00$

Office expenses of $$150$ per month

We estimate that we can manufacture and sell $200$ toys in a month with a sales per toy being $

$-$What is the cost to make one shoe? $[7$ points$]$

If the company sold all toys produced for the month at $$75$ each, what is the gross Profit? $[3$ points$]$

List the $3$ cost elements and the value attached to each $[3$ points$]$

PLEASE SHOW ALL CALCULATIONS AND EXPLANATIONS!