prepare an income statement for bbqand ballons
what does exhibit means ??
exhibits are basically the examples of simillar question given in the textbook
* **MIRI Question 2 John and Paul spent most of their time preparing the barbecues or inflating balloons, whereas Ringo and George were busy with sales and administrative tasks. The table below has information regarding the four friends! activities over the weekend. Table 1 - Operating Inflating Cashier Activity Greeting Total BBQ balloons customers Person John 75% 10% 5% 10% 100% Paul 25% 75% 0% Ringo 10% 30% 50% 10% 100% George 0% 20% 75% 100% 0% 100% 5% John spent most of this time during the two days operating the BBQ, Paul was mostly busy inflating balloons, Ringo was responsible for the cashier, and George has spent most of his time greeting and liaising customers who were passing by. For calculating an activity rate the friends have decided to use the following cost drivers; for operating the BBQ the number of barbecues sold, for inflating balloons the number of balloons sold, and for cashier and greeting customers the total 3,000 units of BBQ and balloons sold. Required a) Considering four cost pool activities (operating the BBQ, inflating balloons, cashier, and greeting customers) prepare a table with the labour cost per person and total labour costs (suggestion: use Exhibit 7-fl as a model). (8 marks) b) Calculate the activity rate for each of the labour cost pool activities (suggestion: use Exhibit 7-7 as a model) and identify which of the four cost pool activities is most expensive and why? (8 marks) c) Prepare an activity-based costing product margin for the sales of barbecues and balloons suggestion: use Exhibit 7-11 as a model). For the sake of simplicity, consider the manufacturing overhead and sales and administrative tasks as untraceable expenses and do not include them. (8 marks) LUTE Download BBQ & Balloons Four friends - John, Paul, Ringo, and George - have decided to put a stand outside a shopping centre entrance for selling barbecue and balloons to members of the public during a weekend. The enterprise was named BBQ & Balloons. Please note the suggestions refer to exhibits from the textbook. Question 1 Each barbecue is sold for $2.00 and each balloon is sold for $1.00. Throughout the two days, the four friends were able to sell 2,000 barbecues and 1,000 balloons. The four friends did not have to bother about the stock of sausage and bread or balloons. They made an arrangement with a supplier and had to pay only $0.25 per barbecue served (a slice of bread and a sausage) and $0.03 for each balloon. For the sake of remuneration, the friends have agreed that each one would receive $400 for the two days of hard work. Besides the expense of labour and material, the four friends had other expenses for the two days. For the sake of simplicity, two expenses were related to the production process, which was leasing a BBQ ($200) and a balloon pump ($50). The other two expenses were related to sales and administrative tasks, which were leasing a gazebo ($50) and geing a permit for having the stand outside the shopping centre ($250). Required Based only on information provided in Question 1 of this assignment prepare an income statement for BBQ & Balloons (suggestion: use Exhibit 7-2 as a model). (8 marks) A B C D (D) 1 Activity Cost Pools 2 Customer orders 3 Product design 4 Order size 5 Customer relations 6 Other Total Cost" $320,000 $252,000 $380,000 $367 500 $490,500 Total Activity 1,000 orders 400 designs 20,000 MHS 250 customers Not applicable EXHIBIT 7-7 Computation of Activity Rates E F G (a) (b) Activity Rate $320 per order $630 per design $19 per MH $1,470 per customer Not applicable 8 "From Echib 7-6 Bot 45 Ett 7-6 l Exhibit 7:7. Exhbt 7-9 Exhbt 210 Exhb 7-11 Exhbito their minds w * **MIRI Question 2 John and Paul spent most of their time preparing the barbecues or inflating balloons, whereas Ringo and George were busy with sales and administrative tasks. The table below has information regarding the four friends! activities over the weekend. Table 1 - Operating Inflating Cashier Activity Greeting Total BBQ balloons customers Person John 75% 10% 5% 10% 100% Paul 25% 75% 0% Ringo 10% 30% 50% 10% 100% George 0% 20% 75% 100% 0% 100% 5% John spent most of this time during the two days operating the BBQ, Paul was mostly busy inflating balloons, Ringo was responsible for the cashier, and George has spent most of his time greeting and liaising customers who were passing by. For calculating an activity rate the friends have decided to use the following cost drivers; for operating the BBQ the number of barbecues sold, for inflating balloons the number of balloons sold, and for cashier and greeting customers the total 3,000 units of BBQ and balloons sold. Required a) Considering four cost pool activities (operating the BBQ, inflating balloons, cashier, and greeting customers) prepare a table with the labour cost per person and total labour costs (suggestion: use Exhibit 7-fl as a model). (8 marks) b) Calculate the activity rate for each of the labour cost pool activities (suggestion: use Exhibit 7-7 as a model) and identify which of the four cost pool activities is most expensive and why? (8 marks) c) Prepare an activity-based costing product margin for the sales of barbecues and balloons suggestion: use Exhibit 7-11 as a model). For the sake of simplicity, consider the manufacturing overhead and sales and administrative tasks as untraceable expenses and do not include them. (8 marks) LUTE Download BBQ & Balloons Four friends - John, Paul, Ringo, and George - have decided to put a stand outside a shopping centre entrance for selling barbecue and balloons to members of the public during a weekend. The enterprise was named BBQ & Balloons. Please note the suggestions refer to exhibits from the textbook. Question 1 Each barbecue is sold for $2.00 and each balloon is sold for $1.00. Throughout the two days, the four friends were able to sell 2,000 barbecues and 1,000 balloons. The four friends did not have to bother about the stock of sausage and bread or balloons. They made an arrangement with a supplier and had to pay only $0.25 per barbecue served (a slice of bread and a sausage) and $0.03 for each balloon. For the sake of remuneration, the friends have agreed that each one would receive $400 for the two days of hard work. Besides the expense of labour and material, the four friends had other expenses for the two days. For the sake of simplicity, two expenses were related to the production process, which was leasing a BBQ ($200) and a balloon pump ($50). The other two expenses were related to sales and administrative tasks, which were leasing a gazebo ($50) and geing a permit for having the stand outside the shopping centre ($250). Required Based only on information provided in Question 1 of this assignment prepare an income statement for BBQ & Balloons (suggestion: use Exhibit 7-2 as a model). (8 marks) A B C D (D) 1 Activity Cost Pools 2 Customer orders 3 Product design 4 Order size 5 Customer relations 6 Other Total Cost" $320,000 $252,000 $380,000 $367 500 $490,500 Total Activity 1,000 orders 400 designs 20,000 MHS 250 customers Not applicable EXHIBIT 7-7 Computation of Activity Rates E F G (a) (b) Activity Rate $320 per order $630 per design $19 per MH $1,470 per customer Not applicable 8 "From Echib 7-6 Bot 45 Ett 7-6 l Exhibit 7:7. Exhbt 7-9 Exhbt 210 Exhb 7-11 Exhbito their minds w
