ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix

At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same.

For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month:

Materials purchased: $20,000

oConsumed 80% of the purchased materials

Direct labor: $8,493.33

Overhead costs: $3,765

Note: Assume that the beginning materials and ending work in process are zero for the month.

Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation.For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month.

Established Sales Price Collars 520 524 Number of Items Sold per Day 528 Leashes 522 526 530 Harnesses 525 530 535 33 28 23 2B 23 18 25 22 2D Milestone Two Contribution Margin Analysis COLLARS LEASH ES HARN ESSES Sales Price per Unit Variable Cost per Unit Contribution Margin \fMilestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory [ll Direct Materials: Materials: Beginning Add: Purchases for month of January {1 Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead Total Costs Deduct: Ending Work in Process Inventory l Cost of Goods Sold Miestone Three - Income Statement Revenue: Collars Leashes Harnesses [otal Revenue: l I Cost of goods sold Gross profit Expenses: General and administrative salaries Depreciation Rent Utilities and insuranoe Scissors, thread, and cording Loan [otal Expenses 5 Net Income;' Loss 5 Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Hours/Qty Rate Labor Materials Variances for Collar Sales Favorabled Variance Unfavorable Direct Labor Time Variance [Actual Hours - Standard Hours) : Standard Rate Direct Labor Rate Variance [Actual Rate - Standard Rate) : Actual Hours Direct Materials Quantity/Efficiency Variance [Actual Quantity - Standard Quantity) : Standard Price Direct Materials Price Variance [Actual Price - Standard Price) & Actual Quantity\fTotal Variable Costs per Leash 5 10.77 Total Fixed Costs S 4.028 33 Harnesses Variable Ham Cost/Item Filled Costs High-tensile strength nylon webbing Harness maker's salary 2.946 66 Polyesterylon ribbons Depreciation on sewing machines 55.00 Buckles made of cast hardware 0.06 Rent 250.00 Price LOAN 010 Utilities and insurance 200100 Scissors, thread, and cording 400.00 Loan in in in FE ERT Salary to self 166 67 Total Variable Costs per Harness 10.66 Total Fixed Costs $ 4.201.66