A B D O 0 6 Beginning Work in Process Inventory 7 Direct Materials: 8 Materials: Beginning 9 Add: Purchases for month of January 11 Materials available for use 12 Deduct: Ending materials 14 Materials Used 15 16 Direct Labor 17 Overhead 19 Total Costs 20 21 Deduct: Ending Work in Process Inventory 22 23 Cost of Goods Sold 24 25 26 27 28 29 30 31 32 Break-Even Analysis COGS Income Statement 0 Variances + C D E F G $ $ 1 2 Milestone Three - Income Statement 3 4 5 Revenue: 3 Collars 7 Leashes B Harnesses 3 0 Total Revenue: 11 Cost of goods sold 12 Gross profit 13 14 Expenses: 15 General and administrative salaries 16 Depreciation 27 Rent 18 Utilities and insurance 19 Scissors, thread, and cording 20 Loan $ $ $ $ 2 Total Expenses 23 24 Net Income/Loss 25 26 27 10 11 12 13 14 15 16 17 18 19 10 Break-Even Analysis COGS Income Statement Variances + B 13 14 15 Variances for Collar Sales Favorable/ Unfavorable Variance $ 16 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) xStandard Rate 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Break-Even Analysis COGS Income Statement Variances + + B D E F G H Variable calculation Fixed Calculations Variable cost 4 COLLAR Item High-tensile strength nylon Polysterylon ribbon Buckles made Price tags Total Variable Cost Per Collar 12/3=4 9/33 0.5/4= 0.125 3 0.125 0.1 7.225 Item Collar mar's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissors, thread and cording Loan payment Salary to self Total Fixed Costs Fixed Cost 2773.33 165 250 200 1200 183.33 166.67 4938.33 165 (given) 750/3=250 0.1 600/3= 200 1200(given) 550/3=183.33 500/3= 166.678 Item (16x40x4.33) LEASHES Item High-tensile strength nylon Polysterylon ribbon Bucklesmade of cast Price tags Total Variable Cost Per Leash 6 4.5 0.167 0.1 10.767 Leash maker's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissorr, thread and cording Loan payment Salary to self Total Fixed Costs Fixed Cost 2771.2 165 250 200 1200 12/2-6 9/2=4.5 0.5/3 = 0.167 0.1(the value is given) 183.33 166.67 4936.2 Variable Cost (17x40x 4.33) HARNESSES Item High-tensile strength nylon Polysterylon ribbon Buckles made of cast Price tags Total Variable Per Harness 6 4.5 0.063 0.1 10.66 12/2-6 9/24.5 0.5/8 = 0.063 Item Harness maker's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissors, threads and cording Loan Salary to self Total Fixed Cost Fixed Cost 2944.4 165 250 200 1200 183.33 166.67 5109.4 0.1 ACC 202 Milestone One: Operational Costs Data Appendix You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data One collar maker, who will be paid $16.00 per hour and work 40 hours per week One leash maker, who will be paid $16.00 per hour and work 40 hours per week One harness maker, who will be paid $17.00 per hour and work 40 hours per week One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs Rent: $750 per month; allocate based on square footage High-tensile strength nylon webbing-$12 per yard of webbing o 3 collars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing Polyesterylon ribbons-$9 per yard of ribbon o 3 collars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing4 Buckles made of cast hardware-$0.50 per buckle o 4 buckles used per collar o 3 buckles used per leash o 8 buckles used per harness 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 Price tags: $250 for 2,500 ($0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month A B D O 0 6 Beginning Work in Process Inventory 7 Direct Materials: 8 Materials: Beginning 9 Add: Purchases for month of January 11 Materials available for use 12 Deduct: Ending materials 14 Materials Used 15 16 Direct Labor 17 Overhead 19 Total Costs 20 21 Deduct: Ending Work in Process Inventory 22 23 Cost of Goods Sold 24 25 26 27 28 29 30 31 32 Break-Even Analysis COGS Income Statement 0 Variances + C D E F G $ $ 1 2 Milestone Three - Income Statement 3 4 5 Revenue: 3 Collars 7 Leashes B Harnesses 3 0 Total Revenue: 11 Cost of goods sold 12 Gross profit 13 14 Expenses: 15 General and administrative salaries 16 Depreciation 27 Rent 18 Utilities and insurance 19 Scissors, thread, and cording 20 Loan $ $ $ $ 2 Total Expenses 23 24 Net Income/Loss 25 26 27 10 11 12 13 14 15 16 17 18 19 10 Break-Even Analysis COGS Income Statement Variances + B 13 14 15 Variances for Collar Sales Favorable/ Unfavorable Variance $ 16 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) xStandard Rate 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Break-Even Analysis COGS Income Statement Variances + + B D E F G H Variable calculation Fixed Calculations Variable cost 4 COLLAR Item High-tensile strength nylon Polysterylon ribbon Buckles made Price tags Total Variable Cost Per Collar 12/3=4 9/33 0.5/4= 0.125 3 0.125 0.1 7.225 Item Collar mar's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissors, thread and cording Loan payment Salary to self Total Fixed Costs Fixed Cost 2773.33 165 250 200 1200 183.33 166.67 4938.33 165 (given) 750/3=250 0.1 600/3= 200 1200(given) 550/3=183.33 500/3= 166.678 Item (16x40x4.33) LEASHES Item High-tensile strength nylon Polysterylon ribbon Bucklesmade of cast Price tags Total Variable Cost Per Leash 6 4.5 0.167 0.1 10.767 Leash maker's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissorr, thread and cording Loan payment Salary to self Total Fixed Costs Fixed Cost 2771.2 165 250 200 1200 12/2-6 9/2=4.5 0.5/3 = 0.167 0.1(the value is given) 183.33 166.67 4936.2 Variable Cost (17x40x 4.33) HARNESSES Item High-tensile strength nylon Polysterylon ribbon Buckles made of cast Price tags Total Variable Per Harness 6 4.5 0.063 0.1 10.66 12/2-6 9/24.5 0.5/8 = 0.063 Item Harness maker's salary (monthly) Depriciation on sewing machine Rent Utilities and Insurance Scissors, threads and cording Loan Salary to self Total Fixed Cost Fixed Cost 2944.4 165 250 200 1200 183.33 166.67 5109.4 0.1 ACC 202 Milestone One: Operational Costs Data Appendix You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data One collar maker, who will be paid $16.00 per hour and work 40 hours per week One leash maker, who will be paid $16.00 per hour and work 40 hours per week One harness maker, who will be paid $17.00 per hour and work 40 hours per week One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs Rent: $750 per month; allocate based on square footage High-tensile strength nylon webbing-$12 per yard of webbing o 3 collars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing Polyesterylon ribbons-$9 per yard of ribbon o 3 collars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing4 Buckles made of cast hardware-$0.50 per buckle o 4 buckles used per collar o 3 buckles used per leash o 8 buckles used per harness 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 Price tags: $250 for 2,500 ($0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month