ACC1820 Project 1 Name OVERVIEW: A list of costs classified as Variable/Fixed and Product/Period will be summarized into general classification categories for TrueBeat Company. We will assume that this cost structure is for a relevant production range of 500 to 1,800 drum sets. TrueBeat experiences significant sales success of their drum sets and wishes to produce and sell more of their product. To increase their relevant range, they must make certain operational changes that will result in a new cost structure. These summarized amounts will be adjusted for operational changes the company intends to make to increase its relevant range to allow True Beat to produce between 4,000 and 8,000 drum sets. Using the revised cost structure, projected income statements will be prepared using both variable costing and absorption costing. Cost-Volume-Profit analysis will be utilized to explore the impact of several potential future impacts to the company's operations. Use the information provided for TrueBeat in Questions It and 12 of CONNECT HW1.1 assignment. Remember: Each connect question is unique to each student. Therefore, your answers will be different from other students. To see detail solutions of the connect assignment, you will need to submit 3 attempts, then, click "SHOW CORRECT ANSWERS" to insure you are using only correct information. 1) We will begin by summarizing TrueBeat's current cost structure. Use the information for TrueBeat from Q11 & 12 of HW1.1 assuming they sold all 1,000 drum sets produced during their first year of operations, Year 1. Note: Instructor plans to demonstrate the summarizing your connect information to this table during a live zoom session to be announced. a) Complete the summary table below. (enter amounts for each pale blue cell) Remember to use 2 decimals for "cost per unit" values. True Beat - Original Cost Structure (connect given data) Total Average per Unit Helpful Hints Dollars Sales price per unit Given ABOVE table on connect Costs: Direct materials Variable/Product Direct labor Variable/Product Variable overhead Variable/Product Variable selling & admin expense Variable/Period Total variable costs per unit Add cost rows above Fixed overhead Fixed/Product Fixed selling & admin expense Fixed/Period (**) Indicates the Cost Behavior column and Cost Function Column under which the specific costs appear in the table completed for Q11 of HW1.1. b) In question 12 of connect, you were asked to summarize all production costs. These production costs (variable and fixed) are considered Cost of Goods Sold under Absorption Costing. Period costs (variable and fixed) are expensed as selling and administrative expenses. Use your table in Q12 on connect as well as the information summarized in the table above to help you complete the Absorption Costing Income Statement below. You need to provide numbers for each of the pale blue cells. Note Assume TrueBeat sold all 1,000 drum sets they manufactured (stated in connect information). Project 1: Page 1 of 14