1. Chapter 2
Assigned Problems

2. P2-14
Staci Valek began dabbling in pottery several years ago as a hobby. Then she decided to quit her job and manufacture pottery full time. The salary of Staci’s job is $3.800 per month
Staci will rent a small building to use as manufacturing space for $500 per month.
The cost of clay and glaze will be $2 each per pottery.
She will hire workers at a labor rate of $8 per pot.
Advertising will cost $600 per month.
Traci’s brother will be the sales representative and be paid $4 for each pot sold.
Manufacturing equipment will be rented at a monthly fee of $300
The costs of legal and similar fees for incorporating the business has already been paid and is $500.
A sales office can be rented for $250 per month
The phone to be installed to take orders will cost $40 per month
Staci has some money in the bank account that earns $1.200 per year. That money will be withdrawn if the pottery business is activated.

5. P2-26
Cost and sales data for Meriwell is given below:

6. How much is the total manufacturing costs for the period?
How much is the cost of goods manufactured?
How much is period expenses?
Assume that the company produced the equivalent of units during the period, what was the average cost for direct materials and factory depreciation (assume straight line method) per units produced?
If units are to be produced next year, how much would the total direct materials and factory depreciation be?
As the manager responsible for production costs, explain to the president ant difference in the average costs per unit between (4) and (5) above

9. Problem 2-27