INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 K-9 Grooming & Camp Statement of Cost of Services For the Month Ended January 31, xxxx Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services *Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.
INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 K-9 Grooming & Camp Statement of Cost of Services For the Month Ended January 31, xxxx Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services *Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please help with the COS schedule. I have included an info sheet with all breakdowns.
See below if you need this information: Income for January-actual activity based on price levels: For example, if you chose a grooming price of $25 per groom, the actual grooms in January were 4 per day assuming a 30-day month.
If you chose. . .
The actual # of grooms/daycare/kennel
Grooming price $25 4 grooms per day
Grooming price $30 3 grooms per day
Grooming price $35 2 grooms per day
Daycare price $18 22 dogs per day
Daycare price $20 12 dogs per day
Daycare price $25 9 dogs per day
Kennel price $25 12 dogs per day
Kennel price $28 9 dogs per day
Kennel price $30 6 dogs per day
Transcribed Image Text:**K-9 Grooming & Camp Financial Analysis**
### Milestone 1: Variable & Fixed Cost Exercise
**Instructions:**
Determine the per-unit cost for each dog. Fill in the blanks to get the unit cost and fixed cost of each service.
#### Grooming (5 grooms per day)
- **Variable Costs:**
- Shampoo: $1.04
- Clipper(s): $1.37
- Bowls: $0.72
- Towels: $5.83
- Scissors: $1.01
- **Total Variable Costs:** $9.97
- **Fixed Costs:**
- Groomer: $2,079.28
- Rent: $30.95
- Loan: $27.50
- Utilities and Insurance: $28.57
- Depreciation on heating system: $37.56
- Cleaning Products: Odoban: $2.06
- Cleaning Products: Simple Green: $3.38
- Draw: $200.00
- **Total Fixed Costs:** $2,367.91
#### Day Care (22 dogs per day for six days)
- **Variable Costs:**
- Day care attendant: $2.88
- Toys: $0.27
- Towels: $1.50
- **Total Variable Costs:** $4.65
- **Fixed Costs:**
- Rent: $32.14
- Loan: $29.47
- Utilities and Insurance: $21.29
- Depreciation on heating system: $29.64
- Cleaning Products: Odoban: $1.59
- Cleaning Products: Simple Green: $2.36
- Draw: $200.00
- **Total Fixed Costs:** $858.44
#### Boarding (12 dogs per day)
- **Variable Costs:**
- Boarding attendant: $5.62
- Bowls: $0.86
- Towels: $0.87
- **Total Variable Costs:** $7.35
- **Fixed Costs:**
- Depreciation on kennels: $200.00
- Rent: $386.90
- Loan: $29.56
- Utilities and Insurance: $214.29
Transcribed Image Text:**INSTRUCTIONS:**
The following are the actual numbers for January:
**Materials**
- Purchased $5,000 of Materials
- Consumed 40% of those purchased materials
**Direct Labor**
- Direct Labor was $6,240
**Overhead**
- Overhead was $2,800
---
**K-9 Grooming & Camp**
**Statement of Cost of Services
For the Month Ended January 31, xxxx**
- **Beginning Work in Process Inventory**: $0
**Direct Materials:**
- **Materials - Beginning**: $0
- **Add: Purchases for month of January**: $5,000
- **Materials Available for Use**: $5,000
- **Deduct: Ending Materials**: $3,000
- **Materials Used**: $2,000
- **Direct Labor**: $6,240
- **Overhead**: $2,800
- **Total Service Costs**: $11,040
- **Deduct: Ending Work in Process Inventory**: $0
- **Cost of Services**: $11,040
**Note:**
* Cost of Goods Sold = Cost of Services
There is no finished goods inventory to maintain.
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