Her first action plan was to list all the key products or items that she would...

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Her first action plan was to list all the key products or items that she would need to start the business. Keisha's list included a conventional oven, a cash register, baking pans, business licenses, health inspections, flour, sugar, baking soda, raisins, butter, eggs, and rum. She also planned on hiring her accounting professor on a part time basis to perform bookkeeping services and her nieces Brianna and Alexis, to help her in the bakery. Aunt Sue Ellen would supervise the girls so that Keisha could focus on developing her business. K&J's cost drivers are provided in Table 1. Required: Keisha needs your help in classifying the various costs. In order to manage these costs, she wants them identified using the information below. She asked that you use Table 2 for your answers. a. Behavior (fixed or variable) b. Traceability (direct or indirect) c. Financial reporting (product or period) d. If product cost, identify which items are direct materials, direct labor, or manufacturing overhead. Costing Systems (Assignment #2) Heaven discussed the business plan with her accounting professor who agreed to serve as her part time accountant. His first advice was for the business to develop a budget. Since Heaven did not complete Accounting II, she was not aware of the various costing systems that exist in businesses. Her accounting professor told Heaven of the three different types of costing systems that exist in organizations - job order, process costing and activity based costing. Required: Which type of costing system is Heavenly Creations most likely to use? Discuss? Business Transactions (Assignment #3) Heaven spent the month of December talking to various suppliers in order to determine her cost structure. She added cost data to the information in Table 1. Heavenly Creations, Inc. opened for business on January 1, 201X as planned and Heaven placed an initial deposit of $10,000 of cash into the business. First, Heaven made a purchase to stock her inventory. Heaven purchased $2,279 of direct ingredients and $150 of indirect ingredients on account for the cakes. During the month of January, the business used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs and had 4 bad eggs to dispose of during the month. 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). Manufacturing overhead is applied to production at 4 dollars per cake. Heaven paid cash for the purchase of the oven and all the 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. The supplier was paid in full at month-end. Heaven's Raw Material physical periodic inventory count resulted in an Inventory level valued at zero at month-end. Required: Use Table 3 to record and post the Heavenly Creations, Inc. January transactions using the General Journal and the provided T-accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T- accounts provided (assume such transactions where applicable, are paid in cash). Table 4 shows the Chart of Accounts for Heavenly Creations, Inc. Reporting (Assignment #4 & # 5) Since Heaven was not paying much attention to the discussion on journal entries in her one accounting class, she does not understand the T-accounts that you provided. However, she heard through her accountant that there is a manufacturing report that would provide her with the same information as the T-accounts and is more user-friendly. She believes that the report is called the Statement of Cost of Goods Manufactured. Required: Prepare: the Trial Balance; the Statement of Cost of Goods Manufactured and an Income Statement for the month of January. Breakeven Analysis/Target Sales (Assignment #6) Although business was off to a good start in January, Heaven realized that she will need to be profitable in order to continue as a viable business. Heaven discussed the subject of profitability with her accountant who suggested that she first needs to determine her breakeven point in both unit sales and dollars. He explained to her that breakeven is the point where all costs are covered by sales and so, profit is equal to zero. He also suggested that the company should establish the monthly target profitability in order to determine the amount of cakes it would need to sell to achieve this level. Since Heaven did not know how to perform this calculation and in order to save money, she asked you to calculate the company's breakeven point and the target sales need to achieve a monthly profit of $500. Required: Calculate Heavenly Creations, Inc.'s breakeven point in both units and sales dollars. Also, calculate the sales needed in order to achieve a monthly profit of $500. Note: Use four decimal places in converting from total to per unit cost. Oven Cash Register Baking Pans Business License Health Inspections Rent Utilities Mobile Phone Flour Sugar Baking Sodal Butter Rasions Eggs Rum Others Accountant Brianna Alexis Keisha Aunt Fixed Variable Direct Table 2 Cost Classification Chart Indirect Period Product DM DL MOH Item and Ingredients Convential Oven Refrigerator Baking pans, licenses Baking flour Eggs Sugar Baking Soda Butter Raisons Others (current, diced date, nutmeg, molasses) Rum (alcohol) Utilities (includes gas, electric and water) Moblie phone (business) Salary-Keisha Salary-nieces Salary-aunt Accountant Estimated MOH TABLE 1: COST INFORMATION Cost $6,000 (depreciate over 5 years on a straightline basis with not residual/salvage value) Provided by landlord Provided by dad $24 per 8 pound bag $2 per dozen $15 per 25 pound bag $6 per 14 pound box $6.50 per 4 pounds $8 per 2 pounds $30 for all 4 boxes per month $12 per bottle $50 per month $50 per month. $500 per month $8 per hour $100 per month $100 per month $4 per cake Standard per Cake N/A N/A N/A 1 pound 4 eggs 1 pound see question 1 pound 1/2 pound 1/4 of bottle 1 person 1.5 hrs per cake Her first action plan was to list all the key products or items that she would need to start the business. Keisha's list included a conventional oven, a cash register, baking pans, business licenses, health inspections, flour, sugar, baking soda, raisins, butter, eggs, and rum. She also planned on hiring her accounting professor on a part time basis to perform bookkeeping services and her nieces Brianna and Alexis, to help her in the bakery. Aunt Sue Ellen would supervise the girls so that Keisha could focus on developing her business. K&J's cost drivers are provided in Table 1. Required: Keisha needs your help in classifying the various costs. In order to manage these costs, she wants them identified using the information below. She asked that you use Table 2 for your answers. a. Behavior (fixed or variable) b. Traceability (direct or indirect) c. Financial reporting (product or period) d. If product cost, identify which items are direct materials, direct labor, or manufacturing overhead. Costing Systems (Assignment #2) Heaven discussed the business plan with her accounting professor who agreed to serve as her part time accountant. His first advice was for the business to develop a budget. Since Heaven did not complete Accounting II, she was not aware of the various costing systems that exist in businesses. Her accounting professor told Heaven of the three different types of costing systems that exist in organizations - job order, process costing and activity based costing. Required: Which type of costing system is Heavenly Creations most likely to use? Discuss? Business Transactions (Assignment #3) Heaven spent the month of December talking to various suppliers in order to determine her cost structure. She added cost data to the information in Table 1. Heavenly Creations, Inc. opened for business on January 1, 201X as planned and Heaven placed an initial deposit of $10,000 of cash into the business. First, Heaven made a purchase to stock her inventory. Heaven purchased $2,279 of direct ingredients and $150 of indirect ingredients on account for the cakes. During the month of January, the business used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs and had 4 bad eggs to dispose of during the month. 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). Manufacturing overhead is applied to production at 4 dollars per cake. Heaven paid cash for the purchase of the oven and all the 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. The supplier was paid in full at month-end. Heaven's Raw Material physical periodic inventory count resulted in an Inventory level valued at zero at month-end. Required: Use Table 3 to record and post the Heavenly Creations, Inc. January transactions using the General Journal and the provided T-accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T- accounts provided (assume such transactions where applicable, are paid in cash). Table 4 shows the Chart of Accounts for Heavenly Creations, Inc. Reporting (Assignment #4 & # 5) Since Heaven was not paying much attention to the discussion on journal entries in her one accounting class, she does not understand the T-accounts that you provided. However, she heard through her accountant that there is a manufacturing report that would provide her with the same information as the T-accounts and is more user-friendly. She believes that the report is called the Statement of Cost of Goods Manufactured. Required: Prepare: the Trial Balance; the Statement of Cost of Goods Manufactured and an Income Statement for the month of January. Breakeven Analysis/Target Sales (Assignment #6) Although business was off to a good start in January, Heaven realized that she will need to be profitable in order to continue as a viable business. Heaven discussed the subject of profitability with her accountant who suggested that she first needs to determine her breakeven point in both unit sales and dollars. He explained to her that breakeven is the point where all costs are covered by sales and so, profit is equal to zero. He also suggested that the company should establish the monthly target profitability in order to determine the amount of cakes it would need to sell to achieve this level. Since Heaven did not know how to perform this calculation and in order to save money, she asked you to calculate the company's breakeven point and the target sales need to achieve a monthly profit of $500. Required: Calculate Heavenly Creations, Inc.'s breakeven point in both units and sales dollars. Also, calculate the sales needed in order to achieve a monthly profit of $500. Note: Use four decimal places in converting from total to per unit cost. Oven Cash Register Baking Pans Business License Health Inspections Rent Utilities Mobile Phone Flour Sugar Baking Sodal Butter Rasions Eggs Rum Others Accountant Brianna Alexis Keisha Aunt Fixed Variable Direct Table 2 Cost Classification Chart Indirect Period Product DM DL MOH Item and Ingredients Convential Oven Refrigerator Baking pans, licenses Baking flour Eggs Sugar Baking Soda Butter Raisons Others (current, diced date, nutmeg, molasses) Rum (alcohol) Utilities (includes gas, electric and water) Moblie phone (business) Salary-Keisha Salary-nieces Salary-aunt Accountant Estimated MOH TABLE 1: COST INFORMATION Cost $6,000 (depreciate over 5 years on a straightline basis with not residual/salvage value) Provided by landlord Provided by dad $24 per 8 pound bag $2 per dozen $15 per 25 pound bag $6 per 14 pound box $6.50 per 4 pounds $8 per 2 pounds $30 for all 4 boxes per month $12 per bottle $50 per month $50 per month. $500 per month $8 per hour $100 per month $100 per month $4 per cake Standard per Cake N/A N/A N/A 1 pound 4 eggs 1 pound see question 1 pound 1/2 pound 1/4 of bottle 1 person 1.5 hrs per cake

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Assignment 1 Keishas Cost Classification Based on the information provided in Table 1 and Table 2 heres the classification of Keishas costs Cost Behavior a Traceability b Financial Reporting c Product ... View the full answer