#1 is product or period cost, picture 2 and 3 is fill in the blank
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank. Product Cost Period Cost Costs 1. Depreciation on salespersons' cars. 2 Rent on equipment used in the factory 3. Lubricants used for machine maintenance 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors salaries 7 Heat, water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed) 9. Advertising costs 10. Workers' compensation insurance for factory employees 11. Depreciation on chairs and tables in the factory lunchroom 12. The wages of the receptionist in the administrative offices 13. Cost of leasing the corporate jet used by the company's executives 14. The cost of renting rooms at a Florida resort for the annual sales conference 15. The cost of packaging the company's product Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $0.55. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity 2. Does the average cost per cup of coffee served increase, decrease or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the Indicated levels of activity. (Round the "Average.cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 500 600 700 Fixed cost Variable cost Total cost Average cost per cup of coffee served Required Required 2 > Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1100 and the variable cost per cup of coffee served is $0.55. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Increase Decrease Remain the same
