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(solution) Examples page 111 3--24 beggninig balance Plus Additions Minus


I have attached an excel spreadsheet. Accounting project 1, very simple I have it completed  just want to double check work. 


Examples

 

page 111 3--24 beggninig balance

 

Plus Additions

 

Minus Uses

 

Enfing balance rm

 

WIP

 

FG

 

Purchases DM/DL/MOH COGM

 

Issued

 

COGM

 

COGS 1 calculate prime cost

 

Beginning RM inventory

 

RM Purchased

 

Ending RM Inventory

 

RM ISSUED (used)

 

Direct Labor

 

Prime Cost 174200

 

248300

 

-161200

 

261300

 

390000

 

651300 2 Total Manufacturing Cost

 

Total Prime

 

Applied MOH

 

Total Manufacturing Cost 651300

 

273000

 

924300 3 COGM

 

Beginning RM inventory

 

WIP Added

 

Ending WIP Inventory

 

WIP Issued = COGM 305500

 

924300

 

-326300

 

903500 4 COGS

 

Beginning Inventory

 

FG Added

 

Ending FG Inventory

 

FG Issued Used COGS 162500

 

903500

 

-152100

 

913900 5 Blaance in MOH on january 31, debit or credit?

 

Beginning MOH

 

Actual MOH

 

Applied MOH

 

Balance MOH january 31 227500

 

-273000

 

-45500 Project 1

 

Due December 16, 2015

 

Name: The project relates to material covered in Chapter 2. Please feel free to ask generic questions.

 

I do not do pregrading, so do not email me to check your work.

 

Submit your completed project by uploading your solution to the project 1 assignment link.

 

You can check that you have submitted, since there will be an exclamation mark in the grade center after you have submitted your assignment.

 

You can click on the exclamation point to verify what you have submitted. Always verify that the correct file has been uploaded.

 

You will be graded on the accuracy of your answer and the usage of excel.

 

Parts 2, 3, & 4 must use excel cell referencing and develop a chart.

 

The project solution is worth a total of 10 pts. I will take off 5 pts. if you do not use the excel application

 

appropriately. You need to use only cell references on the 2 statements you are developing.

 

If you type a number onto the statements, you have defeated the purpose of using excel since the purpose is to link to the data and if

 

the data changes the statements would automatically change, too.

 

I have a demonstration exercise that demonstrates the development of the statements in the chapter 2 folder.

 

The requirements and project below are a little bit different than my demonstration, but there are a lot of similarities.

 

You should use this worksheet as your as your data reference sheet.

 

Make sure you type in your name in cell A3 and save your file with the first initial of your first name, last name, and title of project. Objectives of Project 1

 

1. Analyze and classify product and period costs.

 

2. Develop a Schedule of COGM, Schedule of COGS, and an Income Statement for a manufacturing company.

 

3. Develop comparison charts.

 

4. Evaluate the costs of the production and operations.

 

Computer company, a manufacturer of computer systems, started production in November 20XX.

 

1. Utility cost on the factory is $500 per month.

 

2. Janitorial costs in the factory are $1,500 per month.

 

3. Utility cost on the administrative building is $100 per month.

 

4. Administrative supplies used are $200 per month.

 

5. Raw material cost for a computer total $120 per computer system. The company purchased enough materials to produce 206 computer systems.

 

6. Workers on the production lines are paid an average rate of $24 per hour. (Direct labor is based on the number of units produced times the hourly time to make times the hourly rate.)

 

A computer system usually takes 3 hours to complete.

 

7. The rent of the equipment used to produce computer systems amounts to $4,000 per month.

 

8. Indirect materials cost $5 per computer that are produced.

 

9. Advertising costs for the computer systems will be $2,500 per month.

 

10. The factory building depreciation expense is $100 per month.

 

11. Property taxes on the factory building is $460 a month.

 

12. The company is leasing a building that houses a small administrative staff for $2,000 a month.

 

13. The administrative staff earns $3,000 a month.

 

14. The company just started the business, so you should realize that there are no beginning inventory amounts.

 

15. The company has completed everything in production, so there is no ending work in process.

 

There are 4 parts to this project.

 

Part 1: Using the scenario above fill in the Material purchased, material inventory and the cost item area below with the applicable information.

 

Data:

 

Units Produced

 

205

 

Direct Material

 

Units sold

 

200

 

Beginning Inventory Sales Price

 

Advertising $580

 

2500 Income Tax Rate Material purchased

 

Ending Inventory ?

 

? Work in process (WIP)

 

0 Beginning WIP Finished Goods (FG)

 

0 Beginning FG

 

Calculate ending FG on

 

COGM Worksheet after

 

you compute

 

the cost to make one

 

0 unit Ending WIP 32% Make sure your complete the following for the cost item area. A cost item could affect multiple areas. You are making your calculations based on this month's production and sales.

 

Total each of the columns after you have assigned all the costs to the applicable column(s)

 

I have entered the Factory utility costs to help get you started.

 

Product costs

 

Period Cost

 

Direct

 

Labor Manufacturing

 

overhead Prime

 

costs 0 Guidance:

 

This is an indirect cost of the factory, so this

 

is part of making the good but indirectly.

 

This is MOH and also part of Conversion

 

costs. Remember Conversion

 

costs=DL+MOH Selling and

 

Administrative

 

Expense Conversion

 

Costs Cost item

 

1. Utility costs on factory

 

2. Factory Janitor's Salary

 

3. Utility costs on admin. bldg.

 

4. Admin. Supplies

 

5. Materials used

 

6. Direct Labor

 

7. Equipment Rental

 

8. Indirect materials

 

9. Advertising

 

10. Factory building Depreciation

 

11. Property taxes on factory

 

12. Lease of Admin. Building

 

13. Administrative staff salaries

 

Totals Direct Materials Part 2: Use the information in part 1 to complete the Schedules of Cost of Goods Manufactured and Cost of Goods Sold in addition to the Income Statement on the separate

 

worksheets I have set up for you using only cell references. Look at the sheet tab COGM, COGS, and IS.

 

Also calculate the production cost per unit and the ending finished goods information on the COGM worksheet.

 

Use exhibit 2-7 on pages 45 and 46 as your model.

 

You should not type any number into a cell on the income statement or the Cost of Goods Manufactured Statement.

 

If I would change a number in the data field it would automatically change on the statements. Part 3: Prepare 2 column charts. I have a tutorial in the chapter 2 folder in course documents to assist you and developing a chart.

 

One chart should compare the total product costs to the total period costs, and another chart should compare

 

the three types product costs.

 

Insert these charts on separate sheets and comment on your chart results on the comment worksheet. 500 500 I have prepared a column chart comparing sales and advertising costs so that you can use the process as

 

a guide to prepare the 2 charts I have asked for. I have found from past experience that some students are not

 

familiar with how to prepare a chart in excel. If you are having problems

 

with the charts, please post questions to the discussion board.

 

A key to your success is setting up the data you want in your chart like I did

 

in the blue area below. Make sure you have the labels in the left column and in the next column the applicable $ amount.

 

Sales

 

Advertising Part 4: $116,000

 

2,500 Comment:

 

Based on the comparison in the chart of sales to advertising we can see that a small percentage is

 

going towards advertising. The company seems to have this cost under control, but in November the company may want to

 

look at opportunities that could show an increase in sales based on increased advertising. The two situations below are independent of each other, so make sure you change your figures back to the original data

 

after you answer each of the independent questions on the comment worksheet.

 

a. What if you feel you can increase the price of the computer system to $600 without impacting the sales

 

volume, which statement or statements will be effected and what will be the new net income?

 

If you have used only cell references on your statements you should only have to change the figure in part 1 and

 

the applicable statement(s) will change automatically.

 

b. What if the company decides to increase the average rate to $25 per hour for production line workers

 

which statement or statements will be effected and what will be the new net income?

 

If you have used only cell references on your statements you should only have to change the figure in part 1 and

 

the applicable statement(s) will change automatically. Grading Rubric for Project 1

 

Possible points

 

Requirement #1

 

Each classification(.10each) 2 Requirement #2

 

COGM(.25 pts. Each including the 3 required computations

 

for finished goods in units, unit cost, and finished good cost)

 

COGS(.25 pts. Each)

 

IS(.25 pts. Each and additional .25 for calculation of income tax expense)

 

Requirement #3

 

Charts - 1 pt. each

 

Comments-.25 for each chart

 

Requirement #4

 

Each question .25

 

Deduct 5 pts. If did not use cell referencing on COGM, COGM, and IS 3

 

1

 

1 2

 

0.5 0.5

 

10 Computer Company

 

Schedule of Cost of Goods Manufactured

 

For the Month ended November 30, 20XX

 

Direct materials:

 

Beginning Inventory

 

Purchases

 

Materials available

 

Less: Ending materials

 

Direct materials used

 

Direct labor

 

Manufacturing overhead: Make sure you are using cell references and not typing in the number

 

$0

 

Guidance:

 

Click on the cell and you will not see a number,

 

but a cell reference. So I can change the data field

 

and my statement will automatically change. That

 

is why we use excel, so we can automatically

 

change data and all the linked statements will

 

change automatically. Total manufacturing costs added

 

Add beginning work in process

 

Total manufacturing costs

 

Less: Ending work in process

 

Cost of Goods Manufactured 1.Computation of Cost per unit: COGM/units produced

 

2. Use this computation to calculate the ending finished

 

goods in dollars. Ending units*cost per unit

 

Unit Information:

 

Beginning finished goods

 

Number of units produced

 

Guidance:

 

Ending finished goods is

 

Ending finished goods calculated by adding beginning

 

finished goods+units producedunits sold Computer Company

 

Schedule of Cost of Goods Sold

 

For the Month ended November 30, 20XX Beginning finished goods inventory

 

Add: Cost of goods manufactured

 

Cost of goods available for sale

 

Less: Ending finished goods inventory

 

Cost of Goods Sold $0 Computer Company

 

Income Statement

 

For the Month ended November 30, 20XX Sales

 

Less cost of goods sold:

 

Gross Margin

 

Selling and Administrative expenses

 

Income before income taxes

 

Income tax expense

 

Net Income $116,000 Guidance:

 

Make sure you are using cell

 

references. To reference another

 

worksheet, first put in equals in

 

the cell then click on the

 

worksheet that has the data you

 

want to reference. Comparison of Sales and advert ising cost s $140,000 $120,000 116,000 $100,000 $80,000 $60,000 $40,000 $20,000 2,500

 

$0

 

Sales Advertising Part 3 comments on charts: Part 4:

 

The two situations below are independent of each other, so make sure you change your figures back to the original data

 

after you answer each of the independent questions on the comment worksheet.

 

a. What if you feel you can increase the price of the computer system to $600 without impacting the sales

 

volume, which statement or statements will be effected and what will be the new net income?

 

If you have used only cell references on your statements you should only have to change the figure in part 1 and

 

the applicable statement(s) will change automatically.

 

b. What if the company decides to increase the average rate to $25 per hour for production line workers

 

which statement or statements will be effected and what will be the new net income?

 

If you have used only cell references on your statements you should only have to change the figure in part 1 and

 

the applicable statement(s) will change automatically.

 


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