Business Transactions (Assignment #3) Keisha spent the month of December talking to various suppliers in order to determine her cost structure. She added cost data to the information in Table 1. K&J Bakery Inc. opened for business on January 1, 20X1 as planned. During the month of January, the business purchased and used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs and had 5 bad eggs to dispose of during the month, 20 baking soda boxes, 200 pounds of butter, 100 pounds of raisons, 50 bottles of run, and the other ingredients (one box of each for a total of four) all from one supplier on account. Manufacturing overhead is applied to production at $4 per cake. Keisha purchased the oven using the startup capital and paid all salaries. Her nieces worked 300 hours in total for the month. January was a very good month for the bakery since it baked 200 cakes and sold all for cash. The average selling price was $50 per cake. All manufacturing overhead is closed out at month end. The supplier was paid at month end. Required: Document K&J Bakery Inc January transactions using journal entries (round all calculations to 2 decimal places). All other costs such as utilities, must be accounted for in the journal entries (assume such transactions where applicable, are paid in cash).

Cost S6,000 (depreciated over 5 n/a years on a SL basis No salvage value $0 (provided by the landlord $0 (paid for by dad $24 per 8 pounds ba S2 per dozen $15 per 25 pounds ba S6 per 14 pounds box S6.50 per 4 pounds $8 per 2 pounds Standard per Cake Item and Ingredients Conventional oven Refrigerator Baking pans, licenses Baking flour 1 pound 4 eggs 1 pound Sugar Baking soda Butter Raisins Others (currants, diced date, nutmeg, molasses Cash Register 1 pound pound $30 for all 4 boxes per month $12 per month (rental for 2 ears $12 per bottle qtr of bottle Rum (alcohol Utilities (includes gas, electric S50 per month and water Mobile phone (business Salary- Keisha Sala $50 per month $500 per month $8 per hour 1 person 1.5 hours per cake ry-nieces Salary-aunt Accountant Estimated MOH $100 per month $100 per month $4.00 per cake Cost S6,000 (depreciated over 5 n/a years on a SL basis No salvage value $0 (provided by the landlord $0 (paid for by dad $24 per 8 pounds ba S2 per dozen $15 per 25 pounds ba S6 per 14 pounds box S6.50 per 4 pounds $8 per 2 pounds Standard per Cake Item and Ingredients Conventional oven Refrigerator Baking pans, licenses Baking flour 1 pound 4 eggs 1 pound Sugar Baking soda Butter Raisins Others (currants, diced date, nutmeg, molasses Cash Register 1 pound pound $30 for all 4 boxes per month $12 per month (rental for 2 ears $12 per bottle qtr of bottle Rum (alcohol Utilities (includes gas, electric S50 per month and water Mobile phone (business Salary- Keisha Sala $50 per month $500 per month $8 per hour 1 person 1.5 hours per cake ry-nieces Salary-aunt Accountant Estimated MOH $100 per month $100 per month $4.00 per cake