Question 1 answer is:

Question 2 answer is:

Question :

Balance Cabinet Makers (BCM) has a factory that produces custom bathroom cabinets. It has multiple product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights BCM's cost structure for 2022. The materials include $1,500 for the wood and other materials on a per job basis. It requires 20 hours of labor on average for a custom bathroom. The hourly rate is $14. The sales price will be set at a markup of 75%. The company estimates that it will have 20,000 direct labor hours in total for the bathroom cabinets. It assumes 1,000 units are sold on average per year. A breakdown of estimated yearly costs related to the bathroom cabinets follows: Salaries-office & administrative Salaries for factory supervisors, janitor and security Office Rent Factory Rent Office Utilities and Misc office expenses(based on units sold) SalesTravel(based on units sold) Insurance - office Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table) $375,000 $ 180,000 $ 125,000 $ 25,000 $ 10,000 $ 24,000 $ 12,000 $ 40,000 $ 70,000 $ 20,000 $ 45,000 $ 10,000 $ 80,000 Balance Cabinet Makers (BCM) Schedule 1: Cost Classifications Projections for Year Ending December 31, 2022 1,000 75% 1,500 $ Cost Structure Data Average Units Sold Per Year Sales Price Markup Rate Direct Materials Cost Per Unit Direct Labor Labor Hours Per Unit Cost Per Labor Hour Total Labor Cost Per Unit $ $ 20 14 280 Description Direct Materials Direct Labor Salaries: Office and Administrative Salaries: Factory Supervisors, Janitor, and Security Office Rent Factory Rent Office Utilities and Misc. Office Expenses (Based on Units Sold) Sales Travel (Based on Units Sold) Insurance: Office Depreciation: Office Equipment Depreciation: Factory Equipment Advertising Sales Commissions (Based on Units Sold) Factory Property Taxes Maintenance for Factory Equipment Annual Totals Variable Cost Cost Per Unit Fixed Cost Product Cost Period Cost $ 1,500,000 $ 1,500 $ 1,500,000 280,000 280 280,000 $ 375,000 $ 375,000 180,000 180,000 125,000 125,000 25,000 25,000 10,000 10 10,000 24,000 24 24,000 12,000 12,000 40,000 40,000 70,000 70,000 20,000 20,000 45,000 45 45,000 10,000 10,000 80,000 80,000 $ 1,859,000 $ 1,859 $ 937,000 $ 2,145,000 $ 651,000 Balance Cabinet Makers (BCM) Schedule 2: Average Manufacturing Cost and Selling Price Per Unit Projections for Year Ending December 31, 2022 Cost Structure Data 1,000 75% $ 1,500 Average Units Sold Per Year Sales Price Markup Rate Direct Materials Cost Per Unit Direct Labor Labor Hours Per Unit Cost Per Labor Hour Total Labor Cost Per Unit 20 14 $ $ 280 Fixed Cost Cost Per Unit $ 1,500 280 Product Cost Direct Materials Direct Labor Manufacturing Overhead (MOH) Salaries: Factory Supervisors, Janitor, and Security Factory Rent Depreciation: Factory Equipment Factory Property Taxes Maintenance for Factory Equipment Total Manufacturing Overhead (MOH) Overhead Application Rate Per Unit (Based on Direct Labor Hours) Average Manufacturing Cost Per Unit $ 180,000 25,000 70,000 10,000 80,000 $365,000 365 $ 2,145 Average Selling Price Per Unit (75% Markup) $ 3,754 Prepare a traditional Income Statement assuming a volume of 1,000 units. For the cost of goods sold, please use the per unit cost you calculated in #2. You do not have to prepare any additional schedules. I would use a similar format to exhibit 16-8 or from your lecture notes. I recommend that you list out all operating expenses (period costs) identified in Qi. Do not use just Selling and General/Administrative Expenses for your categories. Points will be lost by not listing out all period costs. You can ignore interest and income tax expense