A) What is the total cost of goods manufactured per unit for 2016?

B) What is the total Cost of Goods Sold in 2016?

C) What is the Net Income for Grip6 in 2016?

D) At the end of the year, Grip 6 realized that they had used more of the webbing than they had initially estimated. It turned out that the ending balance of the webbing was only $600 ($200 less than they had estimated). Assuming all else equal, how would this discovered error in the ending balance of webbing change the Cost of Goods Sold?

Increase COGS

Decrease COGS

Have no affect.

I have no idea.

E) Ghary is considering hiring a production manager while he, Ghary, becomes a residual claimant and does not draw a salary. The production manager has agreed to take on the job for a fixed salary of $45,000 a year plus a bonus if cost of goods manufactured per unit decreases by $1.00 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of metal, the cost per foot of webbing, the cost per box, and the rent remain the same, will the new production manager earn a bonus if she produces 3,050 belts?

Yes

No

F) Ghary is considering hiring a production manager while he, Ghary, becomes a residual claimant and does not draw a salary. The production manager has agreed to take on the job for a fixed salary of $45,000 a year plus a bonus if cost of goods manufactured per unit decreases by $1.00 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of metal, the cost per foot of webbing, the cost per box, and the rent remain the same, will the new production manager earn a bonus if she produces 3,250 belts?

Yes

No

G) The production manager has agreed to take on the job for a fixed salary of $45,000 a year plus a bonus if the variable cost of goods manufactured per unit decreases by $1.00 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of metal, the cost per foot of webbing, the cost per box, and the rent remain the same, will the new production manager earn a bonus if she produces 3,050 belts?

Yes

No

H) The production manager has agreed to take on the job for a fixed salary of $45,000 a year plus a bonus if the variable cost of goods manufactured per unit decreases by $1.00 compared with the cost of goods manufactured per unit in 2016. Assuming the cost per oz of metal, the cost per foot of webbing, the cost per box, and the rent remain the same, will the new production manager earn a bonus if she produces 3,250 belts?

Yes

No

I) What would happen to the COGM if Ghary were to sublet the warehouse to another company for 30 days in return for $2000.

Total COGM would increase by $2000.

Total COGM would decrease by $2000.

Total COGM would not change.

Total COGM would increase by $625

Grip 6, is an emerging company that manufactures and sells belts. The belts include two parts: the belt buckle, and the belt strap. To make a belt, the the buckle is machined from metal, the belt strap is webbing that is cut to length. A completed belt is packaged in single-belt box that is intended to be retained by the customer to store the belt; it is part of the sale and should be included in the cost of good manufactured. Ghary is an employee of Grip 6 and his sole role is to make the belts. The belts are made in a warehouse that includes the necessary equipment to machine the belt buckles and cut the belt strap for $15,500 per year. That rent includes the utilities and use of the equipment. The warehouse will also store any materials for no additional charge. Ghary did one production run in 2015. The Ending Balance of inventory at the end of the run was as follows: Item Ending Amount Ending Balance ($) Metal 200 oz. $50 Webbing 400 ft $800 Packaging Boxes 500 $250 Finished Belts (in boxes) 50 $1,310 Belts in Process 150 $3,931 In 2016, Ghary executed several production runs to produce 3,050 additional belts and sold 2,500 belts. The net revenue from the sales was $87,500. During 2016, Mutt Butter incurred the following expenses: Item Expense ($) Wages to Ghary for Production $45,000 Rent for the Warehouse $15,500 Metal $3,400 $1,875 $350 $1000 Webbing Packaging Boxes Delivery Expenses (Shipping) Advertising Expenses Other General and Administrative Expenses $1000 $2500 The ending balance at the end of 2016 was as follows: Item Ending Amount Ending Balance ($) Metal 800 oz. $200 Webbing 400 ft $800 Packaging $100 Finished Belts (in boxes) 600 $15,724 Belts in Process 150 $2,250 200 Please answer the following 9 questions assuming that Grip 6 uses Full Absorption costing unless specified otherwise: Grip 6, is an emerging company that manufactures and sells belts. The belts include two parts: the belt buckle, and the belt strap. To make a belt, the the buckle is machined from metal, the belt strap is webbing that is cut to length. A completed belt is packaged in single-belt box that is intended to be retained by the customer to store the belt; it is part of the sale and should be included in the cost of good manufactured. Ghary is an employee of Grip 6 and his sole role is to make the belts. The belts are made in a warehouse that includes the necessary equipment to machine the belt buckles and cut the belt strap for $15,500 per year. That rent includes the utilities and use of the equipment. The warehouse will also store any materials for no additional charge. Ghary did one production run in 2015. The Ending Balance of inventory at the end of the run was as follows: Item Ending Amount Ending Balance ($) Metal 200 oz. $50 Webbing 400 ft $800 Packaging Boxes 500 $250 Finished Belts (in boxes) 50 $1,310 Belts in Process 150 $3,931 In 2016, Ghary executed several production runs to produce 3,050 additional belts and sold 2,500 belts. The net revenue from the sales was $87,500. During 2016, Mutt Butter incurred the following expenses: Item Expense ($) Wages to Ghary for Production $45,000 Rent for the Warehouse $15,500 Metal $3,400 $1,875 $350 $1000 Webbing Packaging Boxes Delivery Expenses (Shipping) Advertising Expenses Other General and Administrative Expenses $1000 $2500 The ending balance at the end of 2016 was as follows: Item Ending Amount Ending Balance ($) Metal 800 oz. $200 Webbing 400 ft $800 Packaging $100 Finished Belts (in boxes) 600 $15,724 Belts in Process 150 $2,250 200 Please answer the following 9 questions assuming that Grip 6 uses Full Absorption costing unless specified otherwise