Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries, the bakers add mix-ins to create a variety of cookie including additional flavorings, chocolate chips, nuts, candies and more depending on the production schedule and any special orders. Next, the cookies are placed on trays for baking. The bakery ovens fit 4 trays that each hold 12 cookies at time. After they've cooled for an hour, the cookies are decorated. After the decorations dry, the cookies are packaged and labeled and placed on pallets. It takes about a week to complete a specialty cookie order and the plant uses just-in-time production methods to ensure freshness. Each bakery has their own production schedule determined by the Store Manager to meet local customer demand and fulfill any special orders. Factory Information Since contaminated food would lead to a visit by the Health Department (and possibly shutting down the factory), there are at least three sanitation workers on duty at all times in the factory. Generally, there are 2 warehouse workers on duty to handle the shipping, receiving and storage of raw materials and finished product. The plant typically runs two shifts per day with two production supervisors assigned to each shift. For each of the four cookie bases, the process is virtually the same regardless of the flavors or ingredients. The factory currently has capacity to do $1.8 million in total sales per year, but with additional investments in ovens, mixers and workstations (for about $250,000) it could increase to $2.5 million Reports The mangers at Wookie Cookies are skilled at determining the cost of ingredients, but when it comes to labor and the overhead of each product line, they're not sure where to start. At the moment, Wookie Cookies allocates the same amount of overhead costs to every output unit. They believe that labor and overhead costs vary greatly between the corporate and storefront sales. And, since the company does not currently track labor hours by product, management has no idea of labor cost or profitability by product line. A digital biometric time clock keeps track of hours for the factory employees, but management is open to asking shift workers to track their hours by job or batch. Employees at the storefront locations use paper timecards. Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries, the bakers add mix-ins to create a variety of cookie including additional flavorings, chocolate chips, nuts, candies and more depending on the production schedule and any special orders. Next, the cookies are placed on trays for baking. The bakery ovens fit 4 trays that each hold 12 cookies at time. After they've cooled for an hour, the cookies are decorated. After the decorations dry, the cookies are packaged and labeled and placed on pallets. It takes about a week to complete a specialty cookie order and the plant uses just-in-time production methods to ensure freshness. Each bakery has their own production schedule determined by the Store Manager to meet local customer demand and fulfill any special orders. Factory Information Since contaminated food would lead to a visit by the Health Department (and possibly shutting down the factory), there are at least three sanitation workers on duty at all times in the factory. Generally, there are 2 warehouse workers on duty to handle the shipping, receiving and storage of raw materials and finished product. The plant typically runs two shifts per day with two production supervisors assigned to each shift. For each of the four cookie bases, the process is virtually the same regardless of the flavors or ingredients. The factory currently has capacity to do $1.8 million in total sales per year, but with additional investments in ovens, mixers and workstations (for about $250,000) it could increase to $2.5 million Reports The mangers at Wookie Cookies are skilled at determining the cost of ingredients, but when it comes to labor and the overhead of each product line, they're not sure where to start. At the moment, Wookie Cookies allocates the same amount of overhead costs to every output unit. They believe that labor and overhead costs vary greatly between the corporate and storefront sales. And, since the company does not currently track labor hours by product, management has no idea of labor cost or profitability by product line. A digital biometric time clock keeps track of hours for the factory employees, but management is open to asking shift workers to track their hours by job or batch. Employees at the storefront locations use paper timecards. er ck car Wet Logn Serv.ce Invoices Sent to A. Not s Commerce One Pr + SNS Procurment Invoice rt Wookie Cookies Overview Wookie Cookies, Inc is baking company that is focuses on whimsical cookies designs and fun flavors. Sales consist of storefront sales at their three locations in downtown Stover, Massachusetts and corporate sales from the factory. The bakery always produces its standard cookies for storefront sales, but also will complete special orders for weddings, large parties, and similar events. Additionally, Wookie Cookie has a number of contracts with local restaurants to supply cookies for the restaurant's dessert menus. Wookie Cookie's creations are in high demand and they are considering expanding into other cities. Production overview Naturally, Wookie Cookies can't reveal their recipes, but they have provided some details on how the cookies are made. Wookie Cookies has a main production facility that makes the four primary cookie bases. Wookie Cookies makes four different cookie bases (sugar, chocolate, peanut butter, and gluten free). The four bases are mixed in large batches. The batches of dough are then packaged into large tubs. Each tub consists of enough dough to make approximately 12 dozen cookies. The factory makes approximately 400 tubs of dough a month, but it varies due to demand. Each month, the factory uses 150 tubs of dough to process the corporate orders. The remaining tubs are delivered to each of the three storefront sites by refrigerated truck. Restaurant Orders The corporate orders are regular, standing orders from grocery stores and restaurants in town. The contracts are signed annually, and the orders do not change for the year. However, the sales are not evenly spread through the year as many request larger deliverers in October-December due to increased holiday demand. Employees in the bakery department of the factory add additional mix-ins such as chocolate chips, fudge, candy pieces, marshmallows to the dough before baking. The industrial ovens in the baking department uses large industrial ovens to bake the cookies. They are then sent into a blast chiller to cool. Once the cookies cool, they are packaged to be delivered. The packaging can take some time, as the correct amount of cookies must be packaged and labeled for each of the corporate orders. Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries the bakersadd mixins to create a variety of cookie including additional flavorings Table 1: Selected Financial Data for December 2021 Total Company $145,800 $53,546 $12.14 $19,152 57,867 5729 Cost Category Behavior Sales Expenses Raw Materials Variable Factory Labor Mixed Bakery Labor Mixed Administration Salaries Fixed 10 Supplies Variable 11 Freight & Shipping Out Variable Utilities - Electricity Variable 13 Utilities - Gas (overs Variable 14 Repairs & Maintenance Find 25 Rent expense Feed Telephone & Internet Fixed 17 Brokers' commissions Variable 28 Total Expenses 19 Operating Profit 20 Income Tax 21 Net operating income 22 26 27 Be Sure to Read the Notes to Selected Financial Data 28 SUNG S583 $816 $3,645 $437 $4,374 $134,142 $11,656 $311 $11,347 Table 1 Your team's assignment The managers at Wookie Cookies have asked for help determining a product costing system Wookie Cookies can use for pricing decisions, profitability analysis, financial planning and helping managers understand the business. Table 1 a provides selected actual cost and revenue data for December 2021. Additional information about costs can be found in the Notes to Selected Financial Data Your firm has been invited to provide a proposal. In no more than 1,000 words, write an executive summary addressing the following questions 1. What information does Wookie Cookies need? Before recommending a cost system, it is helpful to understand a company's information needs. Based on case information, discuss the types of cost information Wookie Cookies product costing system should be able to provide. 2. Of the expenses listed in Table 1, determine which should be treated as product costs and which should be treated as period costs for management decision making? 3. For each product cost you identified, how would you track the cost? For example, would you track it by individual job, batch production step, activity, general factory overhead, etc.? 4. What type of costing system would you recommend? Give management a description of what the system would track so they can understand. Do not provide journal entries as management are not accountants and will not understand. Be as descriptive as possible. Your report should be typed and professionally prepared and submitted in a Word Doc or PDF format. See the grading rubric for more information Wrap Te D LL Cut Calibri (Body) 12 Il lile Merge Paste B Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover Raw Materials A6 C F Table 1: Selected Financial Data for December 2021 Total Company $145,800 3 Cost Category Behavior 4 Sales 5 Expenses: 6 Raw Materials Variable 7 Factory Labor Mixed 8 Bakery Labor Mixed 9 Administration Salaries Fixed 10 Supplies Variable Freight & Shipping-Out Variable 12 Utilities - Electricity Variable 13 Utilities - Gas (ovens) Variable 14 Repairs & Maintenance Fixed 15 Rent expense Fixed 16 Telephone & Internet Fixed 17 Brokers' commissions Variable 18 Total Expenses 19 Operating Profit 20 Income Tax 21 Net operating income 22 26 27 Be Sure to Read the Notes to Selected Financial Data 28 29 30 31 32 33 34 35 36 37 38 39 40 $53,946 $32,142 $19,152 $7,867 $7291 $8,584 $1,866 $583 $816 $3,645 $437 $4,374 $134,142 $11,658 $311 $11,347 41 42 Table 1 + Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries, the bakers add mix-ins to create a variety of cookie including additional flavorings, chocolate chips, nuts, candies and more depending on the production schedule and any special orders. Next, the cookies are placed on trays for baking. The bakery ovens fit 4 trays that each hold 12 cookies at time. After they've cooled for an hour, the cookies are decorated. After the decorations dry, the cookies are packaged and labeled and placed on pallets. It takes about a week to complete a specialty cookie order and the plant uses just-in-time production methods to ensure freshness. Each bakery has their own production schedule determined by the Store Manager to meet local customer demand and fulfill any special orders. Factory Information Since contaminated food would lead to a visit by the Health Department (and possibly shutting down the factory), there are at least three sanitation workers on duty at all times in the factory. Generally, there are 2 warehouse workers on duty to handle the shipping, receiving and storage of raw materials and finished product. The plant typically runs two shifts per day with two production supervisors assigned to each shift. For each of the four cookie bases, the process is virtually the same regardless of the flavors or ingredients. The factory currently has capacity to do $1.8 million in total sales per year, but with additional investments in ovens, mixers and workstations (for about $250,000) it could increase to $2.5 million Reports The mangers at Wookie Cookies are skilled at determining the cost of ingredients, but when it comes to labor and the overhead of each product line, they're not sure where to start. At the moment, Wookie Cookies allocates the same amount of overhead costs to every output unit. They believe that labor and overhead costs vary greatly between the corporate and storefront sales. And, since the company does not currently track labor hours by product, management has no idea of labor cost or profitability by product line. A digital biometric time clock keeps track of hours for the factory employees, but management is open to asking shift workers to track their hours by job or batch. Employees at the storefront locations use paper timecards. Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries, the bakers add mix-ins to create a variety of cookie including additional flavorings, chocolate chips, nuts, candies and more depending on the production schedule and any special orders. Next, the cookies are placed on trays for baking. The bakery ovens fit 4 trays that each hold 12 cookies at time. After they've cooled for an hour, the cookies are decorated. After the decorations dry, the cookies are packaged and labeled and placed on pallets. It takes about a week to complete a specialty cookie order and the plant uses just-in-time production methods to ensure freshness. Each bakery has their own production schedule determined by the Store Manager to meet local customer demand and fulfill any special orders. Factory Information Since contaminated food would lead to a visit by the Health Department (and possibly shutting down the factory), there are at least three sanitation workers on duty at all times in the factory. Generally, there are 2 warehouse workers on duty to handle the shipping, receiving and storage of raw materials and finished product. The plant typically runs two shifts per day with two production supervisors assigned to each shift. For each of the four cookie bases, the process is virtually the same regardless of the flavors or ingredients. The factory currently has capacity to do $1.8 million in total sales per year, but with additional investments in ovens, mixers and workstations (for about $250,000) it could increase to $2.5 million Reports The mangers at Wookie Cookies are skilled at determining the cost of ingredients, but when it comes to labor and the overhead of each product line, they're not sure where to start. At the moment, Wookie Cookies allocates the same amount of overhead costs to every output unit. They believe that labor and overhead costs vary greatly between the corporate and storefront sales. And, since the company does not currently track labor hours by product, management has no idea of labor cost or profitability by product line. A digital biometric time clock keeps track of hours for the factory employees, but management is open to asking shift workers to track their hours by job or batch. Employees at the storefront locations use paper timecards. er ck car Wet Logn Serv.ce Invoices Sent to A. Not s Commerce One Pr + SNS Procurment Invoice rt Wookie Cookies Overview Wookie Cookies, Inc is baking company that is focuses on whimsical cookies designs and fun flavors. Sales consist of storefront sales at their three locations in downtown Stover, Massachusetts and corporate sales from the factory. The bakery always produces its standard cookies for storefront sales, but also will complete special orders for weddings, large parties, and similar events. Additionally, Wookie Cookie has a number of contracts with local restaurants to supply cookies for the restaurant's dessert menus. Wookie Cookie's creations are in high demand and they are considering expanding into other cities. Production overview Naturally, Wookie Cookies can't reveal their recipes, but they have provided some details on how the cookies are made. Wookie Cookies has a main production facility that makes the four primary cookie bases. Wookie Cookies makes four different cookie bases (sugar, chocolate, peanut butter, and gluten free). The four bases are mixed in large batches. The batches of dough are then packaged into large tubs. Each tub consists of enough dough to make approximately 12 dozen cookies. The factory makes approximately 400 tubs of dough a month, but it varies due to demand. Each month, the factory uses 150 tubs of dough to process the corporate orders. The remaining tubs are delivered to each of the three storefront sites by refrigerated truck. Restaurant Orders The corporate orders are regular, standing orders from grocery stores and restaurants in town. The contracts are signed annually, and the orders do not change for the year. However, the sales are not evenly spread through the year as many request larger deliverers in October-December due to increased holiday demand. Employees in the bakery department of the factory add additional mix-ins such as chocolate chips, fudge, candy pieces, marshmallows to the dough before baking. The industrial ovens in the baking department uses large industrial ovens to bake the cookies. They are then sent into a blast chiller to cool. Once the cookies cool, they are packaged to be delivered. The packaging can take some time, as the correct amount of cookies must be packaged and labeled for each of the corporate orders. Store Front Sales The remaining dough tubs are delivered to each of the three storefront sites by refrigerated truck. Once the dough reaches the three bakeries the bakersadd mixins to create a variety of cookie including additional flavorings Table 1: Selected Financial Data for December 2021 Total Company $145,800 $53,546 $12.14 $19,152 57,867 5729 Cost Category Behavior Sales Expenses Raw Materials Variable Factory Labor Mixed Bakery Labor Mixed Administration Salaries Fixed 10 Supplies Variable 11 Freight & Shipping Out Variable Utilities - Electricity Variable 13 Utilities - Gas (overs Variable 14 Repairs & Maintenance Find 25 Rent expense Feed Telephone & Internet Fixed 17 Brokers' commissions Variable 28 Total Expenses 19 Operating Profit 20 Income Tax 21 Net operating income 22 26 27 Be Sure to Read the Notes to Selected Financial Data 28 SUNG S583 $816 $3,645 $437 $4,374 $134,142 $11,656 $311 $11,347 Table 1 Your team's assignment The managers at Wookie Cookies have asked for help determining a product costing system Wookie Cookies can use for pricing decisions, profitability analysis, financial planning and helping managers understand the business. Table 1 a provides selected actual cost and revenue data for December 2021. Additional information about costs can be found in the Notes to Selected Financial Data Your firm has been invited to provide a proposal. In no more than 1,000 words, write an executive summary addressing the following questions 1. What information does Wookie Cookies need? Before recommending a cost system, it is helpful to understand a company's information needs. Based on case information, discuss the types of cost information Wookie Cookies product costing system should be able to provide. 2. Of the expenses listed in Table 1, determine which should be treated as product costs and which should be treated as period costs for management decision making? 3. For each product cost you identified, how would you track the cost? For example, would you track it by individual job, batch production step, activity, general factory overhead, etc.? 4. What type of costing system would you recommend? Give management a description of what the system would track so they can understand. Do not provide journal entries as management are not accountants and will not understand. Be as descriptive as possible. Your report should be typed and professionally prepared and submitted in a Word Doc or PDF format. See the grading rubric for more information Wrap Te D LL Cut Calibri (Body) 12 Il lile Merge Paste B Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover Raw Materials A6 C F Table 1: Selected Financial Data for December 2021 Total Company $145,800 3 Cost Category Behavior 4 Sales 5 Expenses: 6 Raw Materials Variable 7 Factory Labor Mixed 8 Bakery Labor Mixed 9 Administration Salaries Fixed 10 Supplies Variable Freight & Shipping-Out Variable 12 Utilities - Electricity Variable 13 Utilities - Gas (ovens) Variable 14 Repairs & Maintenance Fixed 15 Rent expense Fixed 16 Telephone & Internet Fixed 17 Brokers' commissions Variable 18 Total Expenses 19 Operating Profit 20 Income Tax 21 Net operating income 22 26 27 Be Sure to Read the Notes to Selected Financial Data 28 29 30 31 32 33 34 35 36 37 38 39 40 $53,946 $32,142 $19,152 $7,867 $7291 $8,584 $1,866 $583 $816 $3,645 $437 $4,374 $134,142 $11,658 $311 $11,347 41 42 Table 1 +