QUESTION 11 A partial listing of costs incurred at SueBelle

QUESTION 11

  1. A partial listing of costs incurred at SueBelle Corporation during October appears below:
    Direct Materials$195,000Utilities, Factory$9,000Sales Commission$75,000Administrative Salaries$113,000Indirect Labor$30,000Advertising$119,000Depreciation of Production Equipment$28,000Direct Labor$105,000Depreciation of Administrative Equipment$44,000
    Based on the information provided, answer the following questions:
    1.   What is the total amount of product cost listed above? Show your work.
    2.   What is the total amount of period cost listed above? Show your work.
    3. There is not a word length requirement for this question; however, you must show your work.

 

QUESTION 12

  1. Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
    Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute:
    1. the total variable cost,
    2. the total fixed cost,
    3. the total cost,
    4. the average variable cost per unit,
    5. the average fixed cost per unit, and
    6.  the average total cost per unit.
    7. There is not a word length requirement for this question; however, you must show your work.

 

QUESTION 13

  1. Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company’s revenues and expenses for the last three months are given below:
    Cosgrove Company
    Traditional Format Income Statement
    For the Three Months Ended June 30 April May June Sales in Units 3,000 3,7504,500    Sales Revenue420,000525,000630,000Cost of Goods Sold168,000210,000252,000Gross Margin252,000315,000378,000Selling and Administrative Expenses:        Shipping Expense44,00050,00056,000     Advertising Expense70,00070,00070,000     Salaries and Commissions107,000125,000143,000     Insurance Expense9,0009,0009,000     Depreciation Expense42,00042,00042,000Total Selling and Administrative Expenses272,000296,000320,000Net Operating Income (Loss)$(20,000)$19,000$58,000

    Required:

    1.   Identify the fixed and variable costs associated with Cosgrove.
    2.   Calculate the average costs per month.
    3. There is not a word length requirement for this question; however, you must show your work.

 As a managerial accountant, you would have the opportunity to work for company that classifies itself as either service, merchandising, or manufacturing.

Based on what you have learned from this unit, and based on your personal preferences, identify which type of company for which you would prefer to work as a managerial accountant. Be sure to provide specific reasoning to support your answer.

Your response must be at least 200 words in length. 

 

QUESTION 15

  1. Based on your reading in this unit, explain how sunk costs create a barrier to entry into the market place.

    Your response must be at least 200 words in length.

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