Hello, I have categorized each item on this list as variable and fixed already. I have also did the journal entries. I need some assistance with the t-accounts and the balance sheet for this problem. **Problem 11: Introduction Managerial - Cost Classification and Cost Behavior**Heritage Company manufactures and sells desk sets with a wholesale price of $275. The company has sold approximately 4,000 desk sets in the previous and current year but has the capacity to make more without adding another shift. **Annual Costs Associated with Making 4,000 Desks:**- Wood, glass, brass, other materials: $430,000- General office salaries: $110,000- Factory supervision: $70,000- Sales commissions: $60,000- Depreciation, factory building: $105,000- Depreciation, office equipment: $2,000- Indirect materials, factory: $18,000- Factory cutting and assembly labor: $90,000- Advertising: $100,000- Insurance, factory: $6,000- General office billing supplies: $4,000- Property taxes, factory: $20,000- Utilities, factory: $45,000**Required:**Classify costs based on:1. **GAAP Scheme: Costs Are:** a. **Inventory/CGS Related:** - Direct Material - Direct Labor - Manufacturing Overhead b. **Operating Expenses:** - Selling - General & Administrative2. **Managerial Scheme: Costs Are Either Variable or Fixed**

The selling Price is $275. Sale Unit = 4,000 Desks Revenue = 4000 * 275 = $1,100,000 As we have…

Answered: Heritage Company manufactures and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hello, I have categorized each item on this list as variable and fixed already. I have also did the journal entries. I need some assistance with the t-accounts and the balance sheet for this problem.

**Problem 11: Introduction Managerial - Cost Classification and Cost Behavior**

Heritage Company manufactures and sells desk sets with a wholesale price of $275. The company has sold approximately 4,000 desk sets in the previous and current year but has the capacity to make more without adding another shift.

**Annual Costs Associated with Making 4,000 Desks:**

- Wood, glass, brass, other materials: $430,000
- General office salaries: $110,000
- Factory supervision: $70,000
- Sales commissions: $60,000
- Depreciation, factory building: $105,000
- Depreciation, office equipment: $2,000
- Indirect materials, factory: $18,000
- Factory cutting and assembly labor: $90,000
- Advertising: $100,000
- Insurance, factory: $6,000
- General office billing supplies: $4,000
- Property taxes, factory: $20,000
- Utilities, factory: $45,000

**Required:**

Classify costs based on:

1. **GAAP Scheme: Costs Are:**
a. **Inventory/CGS Related:**
- Direct Material
- Direct Labor
- Manufacturing Overhead

b. **Operating Expenses:**
- Selling
- General & Administrative

2. **Managerial Scheme: Costs Are Either Variable or Fixed**

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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