Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 47

Value Income Statement
Gene's Diner has the following information for October, when several new employees were added to the waitstaff:

a 5 percent of this cost was for food that was not used by the expiration date and 10 percent was for food that was incorrectly prepared because of errors in orders taken.
b 15 percent of this cost was for time spent by cooks to reprepare orders that were incorrectly prepared because of errors in orders taken.
c 20 percent of this cost was time taken to address customer complaints about incorrect orders.
d 80 percent of the building was used.
Required
a. Using the traditional income statement format, prepare a value income statement.
b. What value would there be to Gene from preparing the same information in November