i only need help with questions : 12, 14, 16, 17c, 17d 1. (5 points) Make a list

Question

i only need help with questions : 12, 14, 16, 17c, 17d

1. (5 points) Make a list of materials needed to manufacture one finished good. Include the following criteria: material (including block size), color, number required, cost per block, and total cost per type of block. Determine the total material cost to manufacture one finished good. Include packaging for the finished product.

2. (4 points) Determine how many direct labor employees are necessary to meet demand. You do not intend to pay overtime. Laborers work eight hours a day Monday through Friday, which does not include time for lunch since it is not paid. They receive two weeks of paid vacation, but six paid holidays. If your calculation results in a partial person, remember that you will have to round up to a whole number. You do not intend to hire any part-time labor.

3. (3 points) Determine the annual cost for direct labor (including benefits). Do not round.

4. (2 points) What is the direct labor cost per finished product? Do not round.

5. Cost identification.

The following accounts are to be used in 5a-5e:

Account Name

Annual Amount

Office Supplies

$500

Factory Utilities

$2400

Sales Commissions

$40000

Factory Equipment Depreciation

$500

Factory Rent

$5000

Advertising

$12000

Factory Managers Salary

$35000*

Indirect Labor

$35000

Office Utilities

$600

Factory Insurance

$3600

Office Maintenance (Annual Contract)

$200

Sales Salaries

$60000*

Office Equipment Depreciation

$1200

Indirect Materials

$5000

Freight-Out

$200000

Factory Equipment Repairs (based on expected quarterly service calls)

$800

*Includes medical benefits.

Make sure your answers for the following questions reflect all of the costs on the 5e spreadsheet.

6. (3 points) What is the total manufacturing overhead?

7. (5 points) Create a Cost of Goods Manufactured Schedule. Do not round.

8. (4 points) What is the predetermined overhead rate based on direct labor cost? Round to two decimal places and make sure your answer is in the correct format.

9. (4 points) What is the total manufacturing cost per unit? Do not round.

10. (5 points) Calculate the projected net income/(loss) for the first year. This should be in the form of an simple income statement including captions for revenue, cost of goods sold (do not round.), gross profit, operating expenses, and net income/(loss). All operating expenses must be listed individually. Do not round.

11. Cost Identification

a. (2 points) What is the total variable cost?

b. (1 point) What is the total fixed cost?

Actual overhead for the year included:

Factory Repairs $950

Factory Utilities $2430

Indirect Labor $36750

Indirect Materials $5700

Freight-Out $215000

Office Supplies $510

Commissions $43000

Office Utilities $750

Advertising $12000

Office Maintenance $300

Sales Salaries $60000

Office Depreciation $1200

Factory Depreciation $500

Factory Rent $5100

Manager's Salary $ 35000

Factory Insurance $3800

a. (3 points) What is the new total product cost per unit if two small rectangular blocks are substituted for every large rectangular block? Do not round.

b. (5 points) Prepare an income statement to show the new net income/(loss) with sales totaling 100,000 units. Use the new total product cost in Q17a. Do not round.

c. (5 points) How many finished units need to be sold annually to break even? Do not round variable costs or contribution margin. You will have to round the number of units to break even, since you cannot sell a partial unit. Remember to always round up for break even, no matter what the decimal. Use the new total product cost in Q17a.

d. (5 points) Create a C-V-P income statement to prove your break-even. Do not round variable costs or contribution margin. You will have to round the number of units to break even, since you cannot sell a partial unit. Remember to always round up for break even, no matter what the decimal. Use the new total product cost in Q17a.

Account Name

Annual Amount

Office Supplies

$500

Factory Utilities

$2400

Sales Commissions

$40000

Factory Equipment Depreciation

$500

Factory Rent

$5000

Advertising

$12000

Factory Managers Salary

$35000*

Indirect Labor

$35000

Office Utilities

$600

Factory Insurance

$3600

Office Maintenance (Annual Contract)

$200

Sales Salaries

$60000*

Office Equipment Depreciation

$1200

Indirect Materials

$5000

Freight-Out

$200000

Factory Equipment Repairs (based on expected quarterly service calls)

$800

Explanation / Answer

The Internal Revenue Service issued Fact Sheet 2006-20, Business Income and the Tax Gap, as the first in a series of fact sheets aimed at educating the public about components of the Tax Gap. Fact Sheet 2006-20 provided an overview of the Tax Gap and discussed in depth one of its main contributing components: business income.

This, the second in a series fact sheets on the tax gap, explains the rules regarding one factor used to determine business gross profit: Cost of goods sold (COGS).

Generally, businesses that make or buy goods to sell may deduct the cost of goods sold from their gross receipts in computing business income. This information applies if the business is a manufacturer, wholesaler or retailer, or if engaged in any business that makes, buys or sells goods to produce income.

This information generally does not apply to personal service businesses, such as doctors, lawyers, carpenters or painters except for personal service businesses that sell or charge for the materials and supplies normally used in the course of business.

Businesses that must account for an inventory generally use an accrual method of accounting for income as well as expenses.

The following items need to be taken into consideration when computing COGS:

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