Project on K&J BAKERY INC.

Accounting 202 Project

Name Id
 Business Background
In December 2010 Keisha created a business plan, and
incorporated as the K&J Bakery Inc. (K&J).
Keisha planned to open her business with the $50,000
inheritance from her mom as start up capita
Receive a minimal salary of $500 per month for the first
year of business.
Uncle David, a marketing executive with a national bank,
agreed to provide her with marketing support pro-bono.
Cost Clasiification
Answer #2(Costing System)
Job order costing is well suited for K &
L Bakery The cost flow of direct cost
and indirect cost can be easily viewed
Process costing would not be suitable
as process costing is typically used for
companies that continuously produced
identical units.
Activity based costing is not the best
option
 Answer # 3(Business
Transactions)
Raw Material

Opening Inventory 0 Direct

2209
Flour 600 Indirect
120
Eggs (67*2) 134
Sugar {(15/25)*200} 120
Baking soda (6*20) 120
Butter {(4/6.5)*200} 325
Raisins {(4/2)*100} 400
Other materials 30
Rum (12*50) 600
2329
2329

Salaries Payable

Beginning Inventory 0 Cash

3100
Keisha Salary 1500
Aunt Salary 100
Neicess Alex Briona 2400
Accountants 100

3100
3100
Sales
Beginning Inventory 0 Cash
10000
Cake 10,000
1000
10000

Accounts Payable
Beginning Inventory 0
Material 2209

Phone 50
Cash
Register 12
Closing 2271
2271
Manufacturing Overhead
Beginning Inventory 0 Ending
Inventory 1000
Other 30
Utilities 50
Rent 600
Depreciation 100
Aunt Salary 100
Baking Soda 120

1000
1000
Account Depreciation
Beginning Inventory 0
Depreciation

Closing 100

100

100
Work-in Program
Beginning Inventory 0
Closing 5409
DM 2209
DL 2400
MOH 800
5409
5409
Finished Goods
BI 0
Closing 5409
Work-in-progress 5409
Expenses Account
BI 0 CI
662
Keisha Salary 500
Accountant 100
Phone 50
Cash Register 12
662
662
 Cost of Goods Manufactured for
January
Statement of cost of goods
manufacture
Direct Material
2209
Direct Labor
2400
MOH
800
Cost of goods manufactured 5409
 Income Statement
Sales 10,000
cogs (5409)
4591
Less Expenses
Cash Register 12
Salary Exp. 500
Phone Exp. 50
Depreciation
Exp. 100
(662)
Income expenses 3929
 Answer#5(Breakeven
Analysis/Target Sales)
Contribution Margin:26.36/50=
0.5272
Breakeven in Unit Sales:
1512/26.36= 57.36
Breakeven in Rollass: 1512/0.5272=
2867.98
Target Sales in units:
(500+1512)/26.36 = 76.33
Target sales in Rollass =
(500+1512)/0.5272 = 3816.39