1. The Healthy Food Company has been in business over several years. The company bought a building and, because only half of it was needed for operations, the remaining space was rented to another company for Rp. 150,000,000 per year in rental revenue. The popularity of the Health Food (HF) Company's product has necessitated the need for additional space. The renter's lease expires next month, and HF will not renew it in order to expand operations and satisfy demand. The company's product requires food materials that cost Rp. 17,000 per package. The company employs a chef whose salary is Rp. 6,500,000 per month. Kitchen line workers are paid Rp. 4,000,000 to cook and package the product. The company rents the equipment needed to produce the product at a rental cost of Rp.1,000,000 per month. Additional equipment will be needed as production is expanded and the monthly rental charge for this equipment will be $500,000 per month. The building is depreciated on the straight-line basis at Rp. 12,000,000 per year. The company spends Rp. 10,000,000 per year to market the product. To expand production, the company intends to liquidate several investments. These investments currently earn a yearly return of Rp. 25,000, 000. Where the following transaction details are available: rental revenue, food materials costs, chef salary, kitchen line workers' wages, equipment rental, office building depreciation, marketing costs, & return on present investments.

Required: Please categorize each transaction detail that occurs into cost groups namely variable cost, fixed cost, direct materials, direct labor, overhead, period cost, opportunity cost, and sunk cost include your analysis and for a single cost can be assigned to more than one category!

2. The following data (in thousands of Rupiah) have been taken from the accounting records of Food Health Company for the just completed year. Sales........................................................................................ Rp.2,800

Purchases of raw materials..................................................... Rp. 450,000

Direct labor............................................................................. Rp. 350,000

Overhead ................................................................................ Rp. 450,000

Administrative expenses......................................................... Rp. 300,000

Selling expenses...................................................................... Rp. 600,000

Raw food materials inventory, beginning............................... Rp. 200,000

Raw materials inventory, ending ............................................ Rp. 50,000

Work in process inventory, beginning .................................... Rp. 200,000

Work in process inventory, ending......................................... Rp. 400,000

Finished goods inventory, beginning...................................... Rp. 500,000

Finished goods inventory, ending........................................... Rp. 300,000

Required:

a. Prepare a Schedule of Cost of Good Manufactured for Health food company in good form and interpret the result!

b. Compute the Cost of Goods Sold and interpret your result!

c. Using data from your answers above as needed, prepare an Income Statement in good form and explain the result!