Scenario: Economies of Scale 26 points The secret is out! Your catering has been such a bit that you finally opened a small bakeryje around the come you no longer track costs by job. You have switched to a process costing system. You have three different major processes, mising, baking and packaging Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the whick-and-mortar store has increased fined costs. Perform an analysis on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptionssen Recent purchases Material 15-Jan 7-Feb Am Cost Total Am Cos Total Flour (pounds 1.75 X225 32 2012 H4 Butter (pound) 12 0.75 9 17 03 Sugar pounds 51 31 30 115 Edozen) 17 1275 15 03 12 Milk (allos) 10 1 13 12 1.725 2011 Vanilla (gallon) 10 25 25 12 2.125 Cocoa Powder round) 2 40 25 17 Vanilla king pounds) 10 1 10 17 DRS 15 Chocolate leind) 10 115 20 19.55 Bakery box 100 02 20 75 017 12.75 TOTAL 2765 0.75 255 Ingredients per desen Material Unis pound pood Flour Butter Sugar ESP Milk Vanilla Cocoa Powder Vanilla Icing Chocolate ling Bakery box devon Fallon sallon pound Pounds per Average Cou dozen per unit 05 0.33 OS 0.17 01 0.25 0.25 0.75 0.75 1 Pound cach Assumptions: 1. Inventory cost flow is average 2. There are no unfinished units 3. Direct labor Baker your paye 3a Baker your paycheck) - dece $20.00 hout You decorule and package 8 dozen cupcakes per how for 6 wady 35. Apprentice mixes & bakes) $15.00 hour The apprentice mushakes 6 decent caprakes per how and who a des 4. Predetermined overhead rate $2.50 dan The bakery PRODUCED the following unibe Vanilla cupcakes w/vanilla icing 30 Vanilla cupcakes w chocolate icing 34 dozen Chocolate cupcakes w/ chocolate icing 50 dorm Chocolate cupcakes w/ vanilla icing 15 dor 6 The Key SOLD the following wil Vanilla cupcakes w/ vanilla icing 29 done Vanilla cupcakes w/chocolate icing 20 dores Chocolate cupcakes w/ chocolate icing 45 Chocolate cake wivanilla icing 12 de Price Per Damen $17.00 dores Analysis LCalculate the average cost per unit 2. Calculate the cost of Goods PRODUCED for all products 3. Calestate the cost of Goods SOLD and the profit or loss for all products Vanilla cupcakes willing Vanilla cupcakes w/ chocolate icing Material Total Cost Material Total Court F Flour Bumer Butter S Sugar Es Es ME Milk Vanilla Vanilla Chocolate icing Ray Box Bakery Bas Lahor Baker Labor: Baker Laher Apprent Labor Agent Overhead Overa Teal Cost Total Cost Cu Price Customer Price Tad Pro Loss Total Prota Lai Chacolate cupcakes w/ chocolate icing Chocolate cupcakes w/ vanilla icing Material Total Com Material Total Cost He Flour Butter Sucas Eses M Milk Cocoa Powder Cocoa Powder Vanilla Baby Box Bakery Box Lahor Baker Labor Baker Lahe Apprent Laboris Over Overhead Tot Com Total Cost Customer Price Customer Price Tecil Pos Total Protit Loss lowly pay Xhowr worked for 10 points for the discussin questi Evaluate the profitability of each cupcake catopoy. Recommend ways to optimize operater Options includes controlling costs and inventories, improving efficiency, etc 3 D E G 1 Scenario: Economies of Scale H 26 points The secret is out! Your catering has been such a hit that you finally opened a small bakery just around the comer. You no longer track costs by job. You have switched to a process costing system. You have three different major processes: mixing, baking, and packaging. Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the new brick-and-mortar store has increased fixed costs. Perform an analysis on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptions" section 2 3 Recent purchases 4 Material 15-Jan 7.Feb 5 Amt Cost Total Amt Cost Total 6 Flour (pounds) 47 $ 1.75$ 82.25 32 $ 2.01 S. 64.40 7 Butter (pounds 12 S 0,75$ 9.00 17 $ 0.86$ 14,66 Sugar (pounds) 51 S 1.00 51.00 30 $ 1.15$ 34.50 9 Ersadoren) 17 IS 0.75$ 12.75 15 $ 0.86 $ 12.94 10 Milk gallons) 10 IS 1.50 $ 15.00 12 $ 1.73 $ 20,70 11 Vanilla Igallons) 10 $ 2.50 S 25.00 12 $2.13 $25.50 12 Cocoa Powder pounds) 20 $ 2.00 $ 40.00 25 $ 1.20 $ 42.50 13 Vanilla icine (pounds) 10 $ 1,00 S 10.00 17 S 0.85$. 14.45 14 Chocolate Icing (pounds) 10 $ 1.15$ 11.50 20 S 0.98 S 19.55 15 Bakery box 100 $ 0.20 S 20.00 75 $0.17 S 12.75 16 TOTAL $ 276.50 $ 261.95 17 18 Ingredients per dozen Analysis Grading Financial Costi Job Order EOS CV Budget Mariah Pricing Pedy X V fx lu Vanilla (gallons) Cocoa Powder (pounds) 3 Vanilla Icing (pounds) Chocolate Icing (pounds) 5 Bakery box 6 TOTAL 17 18 Ingredients per dozen B 10 20 10 10 100 $ $ $ $ $ 2.50 $ 2.00 $ 1.00 $ 1.15$ 0.20$ $ D 25.00 40.00 10.00 11.50 20.00 276.50 E 12 25 17 20 75 F G $ 2.13 $ 25.50 $ 1.70 S 42.50 $ 0.85 $ 14.45 $ 0.98 $ 19.55 $ 0.17 $ 12.75 $ 261.95 Analysis Unit size 1. Calculat per unit Material 19 20 Flour 21 Butter 22 Sugar 23 Eggs 24 Milk 25 Vanilla 26 Cocoa Powder 27 Vanilla Icing 28 Chocolate Icing 29 Bakery box 30 31 Assumptions: pound pound pound dozen gallon gallon pound pound pound each Pounds per Average Cost dozen 0.5 0.25 0.5 0.17 0.1 0.25 0.25 0.75 0.75 1 2. Calculat 3. Calculate Vanilla Ma Flour Butter Sugar Eggs Milk Vanilla Vanilla Icing Bakery Box A B D E F 1 Assumptions: 2 1. Inventory cost flow is average cost 3 2. There are no unfinished units (work in process) 4 3. Direct labor: Baker (your paycheck) 5 3a. Baker (your paycheck) - decorate and package $20.00 hour 6 You decorate and package 8 dozen cupcakes per hour for 6 hours a day 7 3b. Apprentice (mixes & bakes) $15.00 hour 8 The apprentice mixes and bakes 6 dozen cupcakes per hour and works 8 hours a day 94. Predetermined overhead rate $2.50 dozen 0 5. The bakery PRODUCED the following units 1 Vanilla cupcakes w/ vanilla icing 30 dozen 2 Vanilla cupcakes w/ chocolate icing 24 dozen 3 Chocolate cupcakes w/ chocolate icing 50 dozen 4 Chocolate cupcakes w/ vanilla icing 15 dozen -5 6. The bakery SOLD the following units 6 Vanilla cupcakes w/ vanilla icing 29 dozen 17 Vanilla cupcakes w/ chocolate icing 20 dozen 18 Chocolate cupcakes w/ chocolate icing 45 dozen 79 Chocolate cupcakes w/ vanilla icing 12 dozen 50 Price Per Dozen $17.00 dozen 51 52 Hourly pay X# hour worked per day / # hours it takes to finish an order 53 ch 12, 2022 Activate 1 K Analysis 1. Calculate the average cost per unit. 2. Calculate the cost of Goods PRODUCED for all products 3. Calculate the cost of Goods SOLD and the profit or loss for all products Vanilla cupcakes w/ vanilla icing Vanilla cupcakes w/ chocolate Material Total Cost Material Total Cost Flour Flour Butter Butter Sugar Sugar Eggs Eggs Milk Milk Vanilla Vanilla Vanilla Icing Chocolate icing Bakery Box Bakery Box Labor: Baker Labor: Baker Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss L 1 K Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss Chocolate cupcakes w/ chocolate icing Chocolate cupcakes w/ vanilla Material Total Cost Material Total Cost Flour Flour Butter Butter Sugar Sugar Eggs Eggs Milk Milk Cocoa Powder Cocoa Powder Chocolate icing Vanilla Icing Bakery Box Bakery Box Labor: Baker Labor: Baker Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss 10 Points for the discussion question Evaluate the profitability of each cupcake category. Recommend ways to optimize operations. Operations includes controlling costs and inventories, improving efficiency, etc. Cast Scenario: Economies of Scale 26 points The secret is out! Your catering has been such a hit that you finally opened a small bakery jest round the comer. You no longer track costs by job. You have switched to a process costing system. You have three different major processes, mixing. Saking and packaging Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the whick-and-mortar store has increased fired costs. Performan analyses on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptions et Recent purchases Material 15-Jan 7-Feb Amt Total Am C Tocal Flour (pounds 47 1.75 X225 32 2.012 H. Butler pounds) 12 0.75 17 016 14 Sugar pounds) SI SI 30 115 Edozen) 17 1275 15 O 12.937 Milk Callos) 10 1.5 15 12 1.725 30.1 Vanilla gallon) 10 25 25 12 2.135 25$ Cocoa Powder pound) N 2 40 25 17 Vanilla Icing pounds) 10 1 10 17 ORS 15 Chocolate lends) 10 1.15 115 20 19.55 Bakery box 100 02 20 75 017 TOTAL 2765 9 0.75 Analysis) Ingredients per desen Material Flour Butter Sugar Egp Milk Vanilla Cocoa Powder Vanilla Icing Chocolate ling Bakery box Unile Pounds per Average Cou dozen per unit 05 pound 0.25 pound OS devon 0.17 gallo 0.1 sallon 0.25 pound 0.25 0.75 0.75 cach 1 pound Assumptions: 1. Inventory cost flow is average 2. There are no unfinished units 3. Direct labor Baker (your paye 3a Baker your paycheck) - deco $20.00 how You decorule and package 8 dozen cupcakes per how for 6w a day 3h. Apprentice mixes & hakes) $15.00 hor The apprentice med bakes senprakes per hour and was a day 4. Predetermined overhead rate $2.50 don The bakery PRODUCED the following web Vanilla cupcakes w/ vanilla icing 30 Vanilla cupcakes w/ chocolate icing 24 dome Chocolate cupcakes wichocolate icing 50 dom Chocolate cupcakes w/ vanilla icing 15 dor 6. The be SOLD the following it Vanilla cupcakes w/ vanilla icing 29 don Vanilla cupcakes w/chocolate 20 der Chocolate cupcakes w/chocolate icing 45 du Chocolate cupcakes i vanilla icing 12 des Price Per Deres $17.00 LCalculate the average cost per unit 2. Caleate the stof Good PRODUCED for all products 3. Caleate the cost of Guds SOLD and the profit or loss for all products Vanilla cupcakes willing Vanilla cupcakes w/ chocolate ring Material Total Cost Material Total Con F Flour Bumer Butter S Sagar E TES ME Milk Vinilla Vanilla ang Chocolate icing Rakay Hes Bakery Bes Lahor Baker Labor: Baker Laher Apprent Labor Apprent Chad Overhead Tool Cost Total Cost Custom Price Customer Price Tec Pro Loss Total Profile Loss Chulate cupcakes w/ chocolate icing Chocolate copcakes w/vanilla icing Material Total Cost Material Total Cost F Flour Buna Butter Sucar Ees ME Milk Cocoo Powder Cocoa powder Chocolate icing Vanillakin Bay Box Bakery Box Labu Bakar Labor Bar the Agent Labor Aspen Ovd Overhead Total Co Total Cost Customer Price Customer Price Tal Pro Total Protit loss Hourly pay X + hour worked per 10 points for the discussion question Evaluate the profitability of each cupcake category. Recommend ways to optimize opere Options includes controlling condimentories, improving efficiency. cte J Scenaria: Economies of Scale 26 points The secret autour catering has been that may openedlakeretaround the corner You no longer truck costs by . You have switched to process costing item Youture three diferent procesemine baking page because your business is boomine you purchase eredients in but which has reduced the cost but the new and more or has increased feed costs. Perform at analysis on the ballery's performance and recommendations for making it better Paypecialition to the Assumption sector Recent purchases Material Isan 7.feb Am Cout Art Cont Food 47 IMES 12:25 22 501440 Butter 12 15 0.SE 9.00 17 50.865 1866 Spund 51 100 5100 NO S 1150 Corside 37 OS 12:15 15 SONGS 12 MR 50 5 105 15.00 12 51020.70 Vandaan 30 20 25.00 12 2 25.50 Cooper 20 2003 40.00 25 5 1.20 42.50 Variandi 30 5 100 30.00 17 568553445 Chocolate icing sound 30 5 1153 1150 20 5083 29.55 16 ore 300 5 0205 20.00 75 5 0.17 $12.75 TORAL 5 276.50 3195 Ingredients per doren Analysis Mat Un Pounder Host 1. Calculate the per Flow pound 05 2. Calculate the cost of Good PRODUCED for all product Butter pound 0.25 Calculate the cost of Good Son the role al products 1 : Now Maria Bakery Row Laborator Laber. Apert wered Tot Com Customer Price Tec Chocolate cupcake chocolate Mate Total Coat Four Butter Se Ich Bake Labora Labo: Apr Overheid Prov Customerice Gatal Profis Chocolate cakewania icing Material Tocal Cou har doen Assumptions: 1. Inventory cat flow is verage cout 2. There are now it work in process vectaber Berly paych Baterfrow paw hed decorate and protege $20 00 fecorate and actor forutes per hour for his de 23 Apprentices & Bakes $15.00 The apprentices and bates com cupcakes per hour and workers Prietenied were $250 #es. They PRODUCED he is Varian wang Vania wchocolate Chocolate cupcakes w/ thing Chocolate cakes w/ Wine The SOLD Varile cupcakes Vaupe w/ chocolate Chocolate cupcakes w/ chocolatricing Cherpes w/ Pro BERSAI Housty Xhe worked w/ Autors to finish an ander don Butter down den === = = = = Mi Cocos de Checa Ray IM Cocowder de 0 doren Apart ht Tot Customer Price Bay Lato or Overter Total Queret tal 10 for the dance ter the great way to program Operation des contender prorry. D J Scenaria: Economies of Scale 26 The secreta out our catering has been such that opened abortaround the corner You no longer truck costs by: You have switched to process costing wem. You have three different or procesie mire baking page because your business is boomine you purchase ingredients in buch has reduced the cost but the wewno mort sore has increased fed costs. Perform analys on the bakery's performance and recommendations for making it better Papel tention to the Assumption section Recent purchases Mineral 7.feb Am Cou Total Ant Cont Total 47 IMES 1925 15220140 Butter 12 IS 0.SE 9.00 17 50.865 1666 Sorun 51 13 100 5100 NO 51150 Corside 37 5 Oss 12.15 15 S06 12N MR 50 S 1. 15.00 12 51.23 20:10 Vandaan 30 13 250 25.00 12 $213 25.50 Cooper 20 2005 40.00 25 5 1.20 42.50 13 Variandi 30 5 100S 30.00 17 30853445 Chocolate King 30 5 1153 1150 20 5098 29.55 16 Rakery 100 5 0205 20.00 75 5 0.17 12:25 SOAL 15 276.50 38 Ingredients per doren Analysis Mall Pound Un Cost 1. Cate the per unit Flour pound 05 Cate the Coit of Good PRODUCED To w product Butter pound 0.25 Calculate the cast of Good Sheerlo fecal products 1 Scenario: Economies of Scale 26 points The secret is out! Your catering has been such a bit that you finally opened a small bakeryje around the come you no longer track costs by job. You have switched to a process costing system. You have three different major processes, mising, baking and packaging Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the whick-and-mortar store has increased fined costs. Perform an analysis on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptionssen Recent purchases Material 15-Jan 7-Feb Am Cost Total Am Cos Total Flour (pounds 1.75 X225 32 2012 H4 Butter (pound) 12 0.75 9 17 03 Sugar pounds 51 31 30 115 Edozen) 17 1275 15 03 12 Milk (allos) 10 1 13 12 1.725 2011 Vanilla (gallon) 10 25 25 12 2.125 Cocoa Powder round) 2 40 25 17 Vanilla king pounds) 10 1 10 17 DRS 15 Chocolate leind) 10 115 20 19.55 Bakery box 100 02 20 75 017 12.75 TOTAL 2765 0.75 255 Ingredients per desen Material Unis pound pood Flour Butter Sugar ESP Milk Vanilla Cocoa Powder Vanilla Icing Chocolate ling Bakery box devon Fallon sallon pound Pounds per Average Cou dozen per unit 05 0.33 OS 0.17 01 0.25 0.25 0.75 0.75 1 Pound cach Assumptions: 1. Inventory cost flow is average 2. There are no unfinished units 3. Direct labor Baker your paye 3a Baker your paycheck) - dece $20.00 hout You decorule and package 8 dozen cupcakes per how for 6 wady 35. Apprentice mixes & bakes) $15.00 hour The apprentice mushakes 6 decent caprakes per how and who a des 4. Predetermined overhead rate $2.50 dan The bakery PRODUCED the following unibe Vanilla cupcakes w/vanilla icing 30 Vanilla cupcakes w chocolate icing 34 dozen Chocolate cupcakes w/ chocolate icing 50 dorm Chocolate cupcakes w/ vanilla icing 15 dor 6 The Key SOLD the following wil Vanilla cupcakes w/ vanilla icing 29 done Vanilla cupcakes w/chocolate icing 20 dores Chocolate cupcakes w/ chocolate icing 45 Chocolate cake wivanilla icing 12 de Price Per Damen $17.00 dores Analysis LCalculate the average cost per unit 2. Calculate the cost of Goods PRODUCED for all products 3. Calestate the cost of Goods SOLD and the profit or loss for all products Vanilla cupcakes willing Vanilla cupcakes w/ chocolate icing Material Total Cost Material Total Court F Flour Bumer Butter S Sugar Es Es ME Milk Vanilla Vanilla Chocolate icing Ray Box Bakery Bas Lahor Baker Labor: Baker Laher Apprent Labor Agent Overhead Overa Teal Cost Total Cost Cu Price Customer Price Tad Pro Loss Total Prota Lai Chacolate cupcakes w/ chocolate icing Chocolate cupcakes w/ vanilla icing Material Total Com Material Total Cost He Flour Butter Sucas Eses M Milk Cocoa Powder Cocoa Powder Vanilla Baby Box Bakery Box Lahor Baker Labor Baker Lahe Apprent Laboris Over Overhead Tot Com Total Cost Customer Price Customer Price Tecil Pos Total Protit Loss lowly pay Xhowr worked for 10 points for the discussin questi Evaluate the profitability of each cupcake catopoy. Recommend ways to optimize operater Options includes controlling costs and inventories, improving efficiency, etc 3 D E G 1 Scenario: Economies of Scale H 26 points The secret is out! Your catering has been such a hit that you finally opened a small bakery just around the comer. You no longer track costs by job. You have switched to a process costing system. You have three different major processes: mixing, baking, and packaging. Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the new brick-and-mortar store has increased fixed costs. Perform an analysis on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptions" section 2 3 Recent purchases 4 Material 15-Jan 7.Feb 5 Amt Cost Total Amt Cost Total 6 Flour (pounds) 47 $ 1.75$ 82.25 32 $ 2.01 S. 64.40 7 Butter (pounds 12 S 0,75$ 9.00 17 $ 0.86$ 14,66 Sugar (pounds) 51 S 1.00 51.00 30 $ 1.15$ 34.50 9 Ersadoren) 17 IS 0.75$ 12.75 15 $ 0.86 $ 12.94 10 Milk gallons) 10 IS 1.50 $ 15.00 12 $ 1.73 $ 20,70 11 Vanilla Igallons) 10 $ 2.50 S 25.00 12 $2.13 $25.50 12 Cocoa Powder pounds) 20 $ 2.00 $ 40.00 25 $ 1.20 $ 42.50 13 Vanilla icine (pounds) 10 $ 1,00 S 10.00 17 S 0.85$. 14.45 14 Chocolate Icing (pounds) 10 $ 1.15$ 11.50 20 S 0.98 S 19.55 15 Bakery box 100 $ 0.20 S 20.00 75 $0.17 S 12.75 16 TOTAL $ 276.50 $ 261.95 17 18 Ingredients per dozen Analysis Grading Financial Costi Job Order EOS CV Budget Mariah Pricing Pedy X V fx lu Vanilla (gallons) Cocoa Powder (pounds) 3 Vanilla Icing (pounds) Chocolate Icing (pounds) 5 Bakery box 6 TOTAL 17 18 Ingredients per dozen B 10 20 10 10 100 $ $ $ $ $ 2.50 $ 2.00 $ 1.00 $ 1.15$ 0.20$ $ D 25.00 40.00 10.00 11.50 20.00 276.50 E 12 25 17 20 75 F G $ 2.13 $ 25.50 $ 1.70 S 42.50 $ 0.85 $ 14.45 $ 0.98 $ 19.55 $ 0.17 $ 12.75 $ 261.95 Analysis Unit size 1. Calculat per unit Material 19 20 Flour 21 Butter 22 Sugar 23 Eggs 24 Milk 25 Vanilla 26 Cocoa Powder 27 Vanilla Icing 28 Chocolate Icing 29 Bakery box 30 31 Assumptions: pound pound pound dozen gallon gallon pound pound pound each Pounds per Average Cost dozen 0.5 0.25 0.5 0.17 0.1 0.25 0.25 0.75 0.75 1 2. Calculat 3. Calculate Vanilla Ma Flour Butter Sugar Eggs Milk Vanilla Vanilla Icing Bakery Box A B D E F 1 Assumptions: 2 1. Inventory cost flow is average cost 3 2. There are no unfinished units (work in process) 4 3. Direct labor: Baker (your paycheck) 5 3a. Baker (your paycheck) - decorate and package $20.00 hour 6 You decorate and package 8 dozen cupcakes per hour for 6 hours a day 7 3b. Apprentice (mixes & bakes) $15.00 hour 8 The apprentice mixes and bakes 6 dozen cupcakes per hour and works 8 hours a day 94. Predetermined overhead rate $2.50 dozen 0 5. The bakery PRODUCED the following units 1 Vanilla cupcakes w/ vanilla icing 30 dozen 2 Vanilla cupcakes w/ chocolate icing 24 dozen 3 Chocolate cupcakes w/ chocolate icing 50 dozen 4 Chocolate cupcakes w/ vanilla icing 15 dozen -5 6. The bakery SOLD the following units 6 Vanilla cupcakes w/ vanilla icing 29 dozen 17 Vanilla cupcakes w/ chocolate icing 20 dozen 18 Chocolate cupcakes w/ chocolate icing 45 dozen 79 Chocolate cupcakes w/ vanilla icing 12 dozen 50 Price Per Dozen $17.00 dozen 51 52 Hourly pay X# hour worked per day / # hours it takes to finish an order 53 ch 12, 2022 Activate 1 K Analysis 1. Calculate the average cost per unit. 2. Calculate the cost of Goods PRODUCED for all products 3. Calculate the cost of Goods SOLD and the profit or loss for all products Vanilla cupcakes w/ vanilla icing Vanilla cupcakes w/ chocolate Material Total Cost Material Total Cost Flour Flour Butter Butter Sugar Sugar Eggs Eggs Milk Milk Vanilla Vanilla Vanilla Icing Chocolate icing Bakery Box Bakery Box Labor: Baker Labor: Baker Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss L 1 K Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss Chocolate cupcakes w/ chocolate icing Chocolate cupcakes w/ vanilla Material Total Cost Material Total Cost Flour Flour Butter Butter Sugar Sugar Eggs Eggs Milk Milk Cocoa Powder Cocoa Powder Chocolate icing Vanilla Icing Bakery Box Bakery Box Labor: Baker Labor: Baker Labor: Apprent Labor: Apprent Overhead Overhead Total Cost Total Cost Customer Price Customer Price Total Profit/Loss Total Profit/Loss 10 Points for the discussion question Evaluate the profitability of each cupcake category. Recommend ways to optimize operations. Operations includes controlling costs and inventories, improving efficiency, etc. Cast Scenario: Economies of Scale 26 points The secret is out! Your catering has been such a hit that you finally opened a small bakery jest round the comer. You no longer track costs by job. You have switched to a process costing system. You have three different major processes, mixing. Saking and packaging Because your business is booming, you purchase ingredients in bulk which has reduced the cost but the whick-and-mortar store has increased fired costs. Performan analyses on the bakery's performance and draft recommendations for making it better. Pay special attention to the Assumptions et Recent purchases Material 15-Jan 7-Feb Amt Total Am C Tocal Flour (pounds 47 1.75 X225 32 2.012 H. Butler pounds) 12 0.75 17 016 14 Sugar pounds) SI SI 30 115 Edozen) 17 1275 15 O 12.937 Milk Callos) 10 1.5 15 12 1.725 30.1 Vanilla gallon) 10 25 25 12 2.135 25$ Cocoa Powder pound) N 2 40 25 17 Vanilla Icing pounds) 10 1 10 17 ORS 15 Chocolate lends) 10 1.15 115 20 19.55 Bakery box 100 02 20 75 017 TOTAL 2765 9 0.75 Analysis) Ingredients per desen Material Flour Butter Sugar Egp Milk Vanilla Cocoa Powder Vanilla Icing Chocolate ling Bakery box Unile Pounds per Average Cou dozen per unit 05 pound 0.25 pound OS devon 0.17 gallo 0.1 sallon 0.25 pound 0.25 0.75 0.75 cach 1 pound Assumptions: 1. Inventory cost flow is average 2. There are no unfinished units 3. Direct labor Baker (your paye 3a Baker your paycheck) - deco $20.00 how You decorule and package 8 dozen cupcakes per how for 6w a day 3h. Apprentice mixes & hakes) $15.00 hor The apprentice med bakes senprakes per hour and was a day 4. Predetermined overhead rate $2.50 don The bakery PRODUCED the following web Vanilla cupcakes w/ vanilla icing 30 Vanilla cupcakes w/ chocolate icing 24 dome Chocolate cupcakes wichocolate icing 50 dom Chocolate cupcakes w/ vanilla icing 15 dor 6. The be SOLD the following it Vanilla cupcakes w/ vanilla icing 29 don Vanilla cupcakes w/chocolate 20 der Chocolate cupcakes w/chocolate icing 45 du Chocolate cupcakes i vanilla icing 12 des Price Per Deres $17.00 LCalculate the average cost per unit 2. Caleate the stof Good PRODUCED for all products 3. Caleate the cost of Guds SOLD and the profit or loss for all products Vanilla cupcakes willing Vanilla cupcakes w/ chocolate ring Material Total Cost Material Total Con F Flour Bumer Butter S Sagar E TES ME Milk Vinilla Vanilla ang Chocolate icing Rakay Hes Bakery Bes Lahor Baker Labor: Baker Laher Apprent Labor Apprent Chad Overhead Tool Cost Total Cost Custom Price Customer Price Tec Pro Loss Total Profile Loss Chulate cupcakes w/ chocolate icing Chocolate copcakes w/vanilla icing Material Total Cost Material Total Cost F Flour Buna Butter Sucar Ees ME Milk Cocoo Powder Cocoa powder Chocolate icing Vanillakin Bay Box Bakery Box Labu Bakar Labor Bar the Agent Labor Aspen Ovd Overhead Total Co Total Cost Customer Price Customer Price Tal Pro Total Protit loss Hourly pay X + hour worked per 10 points for the discussion question Evaluate the profitability of each cupcake category. Recommend ways to optimize opere Options includes controlling condimentories, improving efficiency. cte J Scenaria: Economies of Scale 26 points The secret autour catering has been that may openedlakeretaround the corner You no longer truck costs by . You have switched to process costing item Youture three diferent procesemine baking page because your business is boomine you purchase eredients in but which has reduced the cost but the new and more or has increased feed costs. Perform at analysis on the ballery's performance and recommendations for making it better Paypecialition to the Assumption sector Recent purchases Material Isan 7.feb Am Cout Art Cont Food 47 IMES 12:25 22 501440 Butter 12 15 0.SE 9.00 17 50.865 1866 Spund 51 100 5100 NO S 1150 Corside 37 OS 12:15 15 SONGS 12 MR 50 5 105 15.00 12 51020.70 Vandaan 30 20 25.00 12 2 25.50 Cooper 20 2003 40.00 25 5 1.20 42.50 Variandi 30 5 100 30.00 17 568553445 Chocolate icing sound 30 5 1153 1150 20 5083 29.55 16 ore 300 5 0205 20.00 75 5 0.17 $12.75 TORAL 5 276.50 3195 Ingredients per doren Analysis Mat Un Pounder Host 1. Calculate the per Flow pound 05 2. Calculate the cost of Good PRODUCED for all product Butter pound 0.25 Calculate the cost of Good Son the role al products 1 : Now Maria Bakery Row Laborator Laber. Apert wered Tot Com Customer Price Tec Chocolate cupcake chocolate Mate Total Coat Four Butter Se Ich Bake Labora Labo: Apr Overheid Prov Customerice Gatal Profis Chocolate cakewania icing Material Tocal Cou har doen Assumptions: 1. Inventory cat flow is verage cout 2. There are now it work in process vectaber Berly paych Baterfrow paw hed decorate and protege $20 00 fecorate and actor forutes per hour for his de 23 Apprentices & Bakes $15.00 The apprentices and bates com cupcakes per hour and workers Prietenied were $250 #es. They PRODUCED he is Varian wang Vania wchocolate Chocolate cupcakes w/ thing Chocolate cakes w/ Wine The SOLD Varile cupcakes Vaupe w/ chocolate Chocolate cupcakes w/ chocolatricing Cherpes w/ Pro BERSAI Housty Xhe worked w/ Autors to finish an ander don Butter down den === = = = = Mi Cocos de Checa Ray IM Cocowder de 0 doren Apart ht Tot Customer Price Bay Lato or Overter Total Queret tal 10 for the dance ter the great way to program Operation des contender prorry. D J Scenaria: Economies of Scale 26 The secreta out our catering has been such that opened abortaround the corner You no longer truck costs by: You have switched to process costing wem. You have three different or procesie mire baking page because your business is boomine you purchase ingredients in buch has reduced the cost but the wewno mort sore has increased fed costs. Perform analys on the bakery's performance and recommendations for making it better Papel tention to the Assumption section Recent purchases Mineral 7.feb Am Cou Total Ant Cont Total 47 IMES 1925 15220140 Butter 12 IS 0.SE 9.00 17 50.865 1666 Sorun 51 13 100 5100 NO 51150 Corside 37 5 Oss 12.15 15 S06 12N MR 50 S 1. 15.00 12 51.23 20:10 Vandaan 30 13 250 25.00 12 $213 25.50 Cooper 20 2005 40.00 25 5 1.20 42.50 13 Variandi 30 5 100S 30.00 17 30853445 Chocolate King 30 5 1153 1150 20 5098 29.55 16 Rakery 100 5 0205 20.00 75 5 0.17 12:25 SOAL 15 276.50 38 Ingredients per doren Analysis Mall Pound Un Cost 1. Cate the per unit Flour pound 05 Cate the Coit of Good PRODUCED To w product Butter pound 0.25 Calculate the cast of Good Sheerlo fecal products 1
