Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 1 As EEC's corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and
Part 1
As EEC's corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Complete the following for this assignment:
- Review EEC's journal activity.
- Define and identify its variable, fixed, and mixed costs.
- Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.
Activity | ||
1 | Sales not on account | $29,440 |
2 | Sales on account | 28,060 |
3 | Selling Expense | 3,220 |
4 | Administrative Expense | 6,210 |
5 | Supplies Factory | 3,450 |
6 | Insurance Factory | 920 |
7 | Indirect Labor | 6,900 |
8 | Factory Salaries | 288 |
9 | Factory Property Tax | 173 |
10 | Maintenance Expense Factory | 2,001 |
11 | Depreciation Expense Factory | 3,726 |
12 | Utilities Factory | 828 |
13 | Purchases of Raw Materials | 17,250 |
14 | Direct Labor Factory | 3,450 |
15 | Raw Material Inventory, January 1 | 2,070 |
16 | Raw Material Inventory, December 31 | 1,380 |
17 | Work in Process Inventory, January 1 | 4,140 |
18 | Work in Process Inventory, December 31 | 2,300 |
19 | Finished Goods Inventory, January 1 | 5,980 |
20 | Finished Goods Inventory, December 31 | 4,830 |
21 | Bad Debt Expense | 276 |
22 | Accounts Receivable, net | 9,430 |
23 | Prepaid Expenses | 840 |
24 | Land | 2,760 |
25 | Plant and Equipment | 37,950 |
26 | Cash 1/1/05 | 4,646 |
27 | Accounts Payable | 14,410 |
28 | Interest Expense | 28 |
29 | Notes Payable, 10% | 2,070 |
30 | Bonds Payable 8% | 8,510 |
31 | Stockholders' Equity | 31,510 |
32 | Retained Earnings | 6,670 |
33 | Income tax rate | 30% |
As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Select 1 of the following costing concepts:Part 2
- Full costing or absorption costing
- Variable costing
- Target costing
- Life cycle costing
- Activity-based costing
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started