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Sweet Wave Bakery (SWB) is a private corporate that was formed to provide cakes, breads and other sweets to commercial businesses and private individuals. It

Sweet Wave Bakery (SWB) is a private corporate that was formed to provide cakes, breads and other sweets to commercial businesses and private individuals. It is located in Chicago, IL and manufactures the products in the home location and ships the product to retail outlets across the United States. It also has a division that provides onsite bakery installation and warranty services.

SWBs mission is to provide high quality bakery products to satisfy their customers needs and to be recognized as a positive impact in the community. Because of its quality products and community involvement, the company has been growing quickly and is always looking for ways to expand their product line and continue to grow while still remaining profitable.

Sweet Wave Bakery was founded by Sally Wasterton who is the company president and CEO. Sallys brother, Mark, has been working with Sally from the beginning developing new ideas and new recipes for the bakery. Mark is the Vice President of the company with Rolando Garras acting as the factory manager. Rolando is responsible for hiring line managers in the Chicago plant and Vice President Laila Jackson is responsible for the local divisions that install bakery equipment. SWB has a centralized human resources department that is managed by Pat Wilmington. The CFO of the organization, Rebecca Martinez, is in charge of the accounting and finance department. Rebecca has a small staff of CPAs working for her.

The following has been pulled from the financial records of Sweet Wave Bakery for the month of November 20X6.

Accounts Receivable $ 275,000Advertising Expenses54,000Cash260,000DepreciationFactory Equipment16,800DepreciationOffice Equipment2,400Direct Labor42,000Factory Supplies Used16,800Factory Utilities10,200Finished Goods Inventory, November 3068,800Finished Goods Inventory, October 3172,550Indirect Labor48,000Office Supplies Expense1,600Other Administrative Expenses72,000Prepaid Expenses41,250Raw Materials Inventory, November 3052,700Raw Materials Inventory, October 3138,000Raw Materials Purchases184,500RentFactory Equipment47,000RepairsFactory Equipment4,500Salaries325,000Sales1,350,000Sales Commissions40,500Work In Process Inventory October 3152,700Work In Process Inventory, November 3042,000

Part 1 assignment:

Sweet Wave Bakery has a sales mix of cakes, bread, and pies as follows:

Annual expected sales:

Sale of cakes 460,000 units at $26.50

Sale of bread 1,480,000 units at $11.20

Sale of pies 60,000 units at $42.50

Variable manufacturing cost per unit:

Cakes $13.96

Bread $ 7.95

Pies $9.75

Fixed manufacturing overhead cost (total) $760,000

Variable selling and administrative expenses per unit:

Cakes $1.30

Bread $0.50

Pies $3.41

Fixed selling and administrative expenses (total) $1,600,000

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