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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Question 1 in the attached image

Transcribed Image Text:Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly
expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated
levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served
Cups of Coffee Served in a Week
2,000
2,200
?
?
?
?
?
?
2,100
?
?
?
?
?
?
2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number
of cups of coffee served in a week increases? Explain.
Expert Solution
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- Can i have the steps in formula form pleasearrow_forwardZina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800arrow_forwardWhat is the answer to d e and f?arrow_forward
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