Can someone please check to ensure I did the Statement of Cost of Services and the income statement correctly.
INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapter 5. Direct Material Direct Labor Item/Cost Overhead Period Costs Fixed Variable Costs (Payments) for the purpose of Generating Revenues Groomer X Product Costs Period Costs Day care attendant .............. Receptionist ..... Kennel attendant Direct Material Direct Labor Food and water bowls .................... Depreciation on kennels ---- Rent ---- Utilties and insurance ---- Grooming tub 48" X X Overhead Depreciation on heating system ............................................. Clippers Shampoo (Crystal Clear: five-gallon pai ...................................... Towels Inventory (Balance Sheet) Scissors (7-inch straight, ear & nose) LLLLLLLL Toys (used in day care only) Cleaning products (used throughout) .................................................... Dryer Cost of Goods Sold (Income Statement) Selling and Admin Exp. (Income Statement) INSTRUCTIONS: Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service. Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs $ $ Shampoo Clipper(s) Bowls Towels Scissors 1.04 1.37 0.72 5.83 1.01 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 2,080.00 30.95 20.00 28.57 3.95 2.08 2.36 200.00 Total Variable Costs $ 9.97 $ 2,367.91 Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel DAY CARE Item Variable Costs Item Fixed Costs Day care attendant $ 2.88 Rent $ 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs $ $ Kennel attendant Bowls Towels 5.62 0.86 0.87 Item Depreciation on kennels Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97 ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs): GENERAL Use data from Milestone 1 in your analysis CONTRIBUTION MARGIN ANALYSIS Select a price for each service (grooming, day care, boarding) Determine the variable cost from the Variable_Fixed tab for each service Calculate the contribution margin for each service based on your sales price and the variable cost for that service BREAK-EVEN ANALYSIS Determine the fixed cost from the Variable_Fixed tab for each service Fixed & Variable cost designation is provided Calculate the break-even units (round up) for each service Calculate the break-even units (round up) for suggested target profit levels for each service INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ 18.00 $ 25.00 S 25.00 Fixed Costs $ 858 1,379 2,368 Contribution Margin $ 13.35 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit S 667.00 $ 909.00 S 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ 18.00 $ 25.00 S 25.00 Fixed Costs $ 858 1,379 2,368 Contribution Margin $ 13.35 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit S 667.00 $ 909.00 S 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 IMPORTANT NOTE: Make sure to completely review the Rubric for Milestone 3 Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7) ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs) : GENERAL Use data from Milestone 1 and Milestone 2 in your analysis Revenue data needed for the Income Statement will be provided at the end of Module 4 COST OF SERVICES PROVIDED SCHEDULE Use the data at the top of the schedule to complete the report INCOME STATEMENT Use the data at the top of the schedule to complete the report Use the data from your Cost of Services Provided Schedule VARIANCES Use the data at the top of the schedule to calculate the following: Variance Favorable / Unfavorable INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Statement of Cost of Services For the Month Ended January 31, XXXX 0 Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used $ 0 5,000 5,000 (3,000) $ 2,000 Direct Labor Overhead Total Service Costs 6,240 2,800 $ 11,040 Deduct: Ending Work in Process Inventory 0 Cost of Services 11,040 * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & nsurance = $600 Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services Gross Profit 3,000 118,800 9,000 $ 23,880 11,040 12,840 $ Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses 1,200 100 120 83 650 420 600 $ 3,173 Net Income / Loss $ 9,667 Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapter 5. Direct Material Direct Labor Item/Cost Overhead Period Costs Fixed Variable Costs (Payments) for the purpose of Generating Revenues Groomer X Product Costs Period Costs Day care attendant .............. Receptionist ..... Kennel attendant Direct Material Direct Labor Food and water bowls .................... Depreciation on kennels ---- Rent ---- Utilties and insurance ---- Grooming tub 48" X X Overhead Depreciation on heating system ............................................. Clippers Shampoo (Crystal Clear: five-gallon pai ...................................... Towels Inventory (Balance Sheet) Scissors (7-inch straight, ear & nose) LLLLLLLL Toys (used in day care only) Cleaning products (used throughout) .................................................... Dryer Cost of Goods Sold (Income Statement) Selling and Admin Exp. (Income Statement) INSTRUCTIONS: Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service. Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs $ $ Shampoo Clipper(s) Bowls Towels Scissors 1.04 1.37 0.72 5.83 1.01 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 2,080.00 30.95 20.00 28.57 3.95 2.08 2.36 200.00 Total Variable Costs $ 9.97 $ 2,367.91 Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel DAY CARE Item Variable Costs Item Fixed Costs Day care attendant $ 2.88 Rent $ 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs $ $ Kennel attendant Bowls Towels 5.62 0.86 0.87 Item Depreciation on kennels Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97 ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs): GENERAL Use data from Milestone 1 in your analysis CONTRIBUTION MARGIN ANALYSIS Select a price for each service (grooming, day care, boarding) Determine the variable cost from the Variable_Fixed tab for each service Calculate the contribution margin for each service based on your sales price and the variable cost for that service BREAK-EVEN ANALYSIS Determine the fixed cost from the Variable_Fixed tab for each service Fixed & Variable cost designation is provided Calculate the break-even units (round up) for each service Calculate the break-even units (round up) for suggested target profit levels for each service INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ 18.00 $ 25.00 S 25.00 Fixed Costs $ 858 1,379 2,368 Contribution Margin $ 13.35 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit S 667.00 $ 909.00 S 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ 18.00 $ 25.00 S 25.00 Fixed Costs $ 858 1,379 2,368 Contribution Margin $ 13.35 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit S 667.00 $ 909.00 S 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 IMPORTANT NOTE: Make sure to completely review the Rubric for Milestone 3 Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7) ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs) : GENERAL Use data from Milestone 1 and Milestone 2 in your analysis Revenue data needed for the Income Statement will be provided at the end of Module 4 COST OF SERVICES PROVIDED SCHEDULE Use the data at the top of the schedule to complete the report INCOME STATEMENT Use the data at the top of the schedule to complete the report Use the data from your Cost of Services Provided Schedule VARIANCES Use the data at the top of the schedule to calculate the following: Variance Favorable / Unfavorable INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Statement of Cost of Services For the Month Ended January 31, XXXX 0 Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used $ 0 5,000 5,000 (3,000) $ 2,000 Direct Labor Overhead Total Service Costs 6,240 2,800 $ 11,040 Deduct: Ending Work in Process Inventory 0 Cost of Services 11,040 * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & nsurance = $600 Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services Gross Profit 3,000 118,800 9,000 $ 23,880 11,040 12,840 $ Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses 1,200 100 120 83 650 420 600 $ 3,173 Net Income / Loss $ 9,667 Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain
