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

(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.