Jason, the manager at Metlock's Danishes, was excited to determine the company's profit this year. It was a break$-$out year for the

company, especially after being selected to cater the World College Club Sports Athletes' Annual Meeting. The company was thrilled!

The number and variety of danishes produced for that event alone doubled the company's sales for the year. Jason knew the total

sales amount but had yet to determine the total COGS. He hoped that it would be low relative to sales. Here are the transactions and

amounts Jason found when gathering information for his COGS calculation.

Jason was sure that not all of these amounts should be included in COGS but didn't know how to correctly sort them. Vour answer is correct.

$($a$)$ Fill in the third column of the above chart by identifying whether each cost item should be initially recorded as an asset or as an

expense.

$($b$)$ Fill in the fourth column of the chart by recognizing, if each item is considered to be inventoriable $($product$)$ cost or not. Schedule of COGM & COGS

I

: Beginning WIP Inventory

: BegInning FInished Goods Inventory

: Ending FInlshed Goods Inventory V Your answer is correct.

If Sandhill incurs exactly the same total fixed costs but produces and sells only $1,600,000$ notebooks this coming year, what

happens to the fixed cost per unit? In turn, what would the total cost per unit be$?$ If the average selling price stays at $$1\mathrm{.}90,$ how

much gross margin would be earned? $($Round per unit answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Fixed costs

Total cost per unit

Gross margin

by $

$

$

per unit

per unitYour answer is incorrect.

If Sandhill reworks its equipment layout and processes to increase the top end of its relevant range of activity to $2,500,000$

notebooks without incurring more fixed costs, what happens to the fixed cost per unit if it is able to make and sell that larger

quantity of units? $($Round per unit answers to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Fixed costs

Total cost per unit

Gross margin

by $

$

per unit

per unit

$