Question 1: Suppose the smartphone manufacturer Peony Electronics provides the following information for its costs last month (in millions):

Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category. (Enter amounts in millions. If a box is not used in the table, leave the box empty; do not enter a zero.)

Question 2:

Mike Leaver is the sole proprietor of Lavish Pets, a business specializing in the sale of high-end pet gifts and accessories. Lavish Pets sales totaled $1,105,000 during the most recent year. During the year, the company spent $50,000 on expenses relating to website maintenance, $32,500 on marketing, and $28,000 on wrapping, boxing, and shipping the goods to customers. Lavish Pets also spent $636,000 on inventory purchases and an additional $20,500 on freight-in charges. The company started the year with $21,400 of inventory on hand and ended the year with $18,400 of inventory. Prepare Lavish Pets' income statement for the most recent year.

Question 3:

Compute the Cost of Goods Manufactured and Cost of Goods Sold for Clear Bay Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials.

Start the calculation for cost of goods manufactured by calculating the direct materials used.

Peony Electronics Value Chain Cost Classification Production Direct Direct || Manufacturing Rand D || Design || Materials || Labor | Overhead Customer Service Cost | Marketing || Distribution Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly-line workers' wages Data Table her int box Delivery expense to customers via UPS Salaries of salespeople Chipset (the set of chips used on a phone's motherboard) Exterior case for phone.... Assembly-line workers' wages Technical customer support hotline ......... Depreciation on plant and equipment ........... Rearrangement of production process to accommodate new robot..$ 1-800 (toll-free) line for customer orders .......$ Salaries of scientists who developed new model ..............$ 6 3 13 Print Done Begin by calculating the cost of goods sold for the year. Lavish Pets Cost of Goods Sold For Current Year Plus: Less: Cost of goods sold Data Table OS Beginning End of End of of Year Year Year Raw materials inventory ........$ 20,000 $ 26,000 Insurance on plant ..... .........$ 8,500 Work in process inventory ...... $ 41,000 $ 28,000 Depreciation-plant building and equipment ....$ 13,400 Finished goods inventory ......$ 13,000 $ 28,000 Repairs and maintenance-plant .............$ 4,300 Purchases of direct materials ... $ 70,000 Marketing expenses.......................S 81,000 Direct labor .......... $ 87,000 General and administrative expenses ........$ 26,500 Indirect labor.... ... $ 42,000 .. Print Done Start the calculation for cost of goods manufactured by calculating the direct materials used. Clear Bay Company Calculation of Direct Materials Used For Current Year Plus: Less: Direct materials used