Cost accounting Project

Project description
Project Introduction:
In this project, you will be required to attempt a number of problems. The concepts, including cost-volume-profit (CVP) analysis, decision making, job costing with focus on service industry, and budgeting, and flexible budget variances will be applied in separate problems.
Course Objectives Tested:
1. Analyze how cost accounting supports management.
2. Make decisions using cost-volume-profit (CVP) analysis.
3. Evaluate methods to accurately determine job costs.
4. Evaluate the advantages of a budget in managing operations and developing a strategic plan.
5. Compute price variances and efficiency variances for direct-cost categories.
6. Analyze variable and fixed overhead cost variances.
PROJECT SUBMISSION PLAN
Description/Requirements of Project
Evaluation Criteria
Assessment Preparation Checklist:
To prepare for this project, you should:
Read through this weeks online lesson, which will help you review the important concepts covered in Weeks 16.
Read the following chapters from your textbook, Cost Accounting:
o Chapter 1, pp. 219
o Chapter 2, pp. 2651
o Chapter 3, pp. 6286
o Chapter 4, pp. 98126
o Chapter 5, pp. 138164
o Chapter 6, pp. 182211
o Chapter 7, pp. 226249
o Chapter 8, pp. 262289
Did you show step-by-step calculations for each problem requirement assigned?
Did you provide detailed professional analysis with numbers as required?
BU315
Project
2
Description/Requirements of Project
Evaluation Criteria
Title: Cost AccountingMixed Bag
Problem 1:
AquaPure produces two models of water filters.
Model 1 attaches to the faucet and cleans all water that passes through the faucet. This model is sold for $80 and has variable costs of $20.
Model 2 is a pitcher-cum-filter that only purifies water meant for drinking. This model is sold for $90 and has variable costs of $25.
AuqaPure sells two faucet models for every three pitchers sold. Fixed costs equal $945,000.
Task:
1. What is the breakeven point in unit sales and dollars for each type of filter at the current sales mix?
2. AquaPure is considering buying new production equipment. The new equipment will increase fixed cost by $181,400 per year and will decrease the variable cost of the faucet and the pitcher units by $5 and $9 respectively. Assuming the same sales mix, how many of each type of filter does AquaPure need to sell to break even?
3. Assuming the same sales mix, at what total sales level would AquaPure be indifferent between using the old equipment and buying the new production equipment? If total sales are expected to be 30,000 units, should AquaPure buy the new production equipment?
Problem 2:
Books n Books Inc. schedules book signings for science fiction authors and creates e-books and books on CD to sell at each signing. The company uses a normal-costing system with two direct cost pools, labor and materials, and one indirect cost pool, general overhead. General overhead is allocated to each signing based on 80% of labor cost. Actual overhead equaled allocated overhead in March 2010. Actual overhead in April was $1,980. All costs incurred during the planning stage for a signing and during the signing are gathered in a balance sheet account called Signings in
BU315
Project
3
Description/Requirements of Project
Evaluation Criteria
Progress (SIP). When a signing is completed, the costs are transferred to an income statement account called Cost of Completed Signings (CCS). Following is cost information for April 2010:
From Beginning SIP
Incurred in April
Author
Materials
Labor
Materials
Labor
N. Asher
$425
$750
$90
$225
T. Bucknell
710
575
150
75
S. Brown
200
550
320
450
S. King

650
400
D.Sherman

150
200
The following information relates to April 2010:
As of April 1, there were three signings in progress, N. Asher, T. Bucknell, and S. Brown. Signings for S. King and D. Sherman were started during April. The signings for T. Bucknell and S. Kingwere completed during April.
Tasks:
1. Calculate SIP at the end of April.
2. Calculate CCS for April.
3. Calculate under/overallocated overhead at the end of April.
4. Calculate the ending balances in SIP and CCS if the under/overallocated overhead amount is as follows:
a. Written off to CCS
b. Prorated based on the ending balances (before proration) in SIP and CCS
c. Prorated based on the overhead allocated in April in the ending balances of SIP and CCS (before proration)
5. Which of the methods in requirement 4 would you choose, and why?
BU315
Project
4
Description/Requirements of Project
Evaluation Criteria
Problem 3:
ComfyFootware Inc. manufactures a popular undyed cloth sandal in one style, but two variationsRegular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth covered wooden soles. ComfyFootware is preparing its budget for June 2012, and it has estimated sales based on past experience.
Other information for the month of June is as follows:
Input Prices
Direct materials
Cloth
$3.50 per yard
Wood
$5.00 per board foot
Direct manufacturing labor
$10 per direct manufacturing labor-hour
Input Quantities per Unit of Output (per pair of sandals)
Regular
Deluxe
Direct materials
Cloth
1.3 yards
1.5 yards
Wood
0
2 b.f.
Direct manufacturing labor-hours (DMLH)
5 hours
7 hours
Setup-hours per batch
2 hours
3 hours
Inventory Information, Direct Materials
Cloth
Wood
Beginning inventory
610 yards
800 b.f.
Target ending inventory
386 yards
295 b.f.
Cost of beginning inventory
$2,146
$4,040
ComfyFootware accounts for direct materials using a FIFO cost flow assumption.
BU315
Project
5
Description/Requirements of Project
Evaluation Criteria
Sales and Inventory Information, Finished Goods
Regular
Deluxe
Expected sales in units (pairs of sandals)
2,000
3,000
Selling price
$80
$130
Target ending inventory in units
400
600
Beginning inventory in units
250
650
Beginning inventory in dollars
$15,500
$61,750
ComfyFootware uses a FIFO cost flow assumption for finished goods inventory.
All the sandals are made in batches of 50 pairs of sandals. ComfyFootware incurs manufacturing overhead costs, marketing and general administration, and shipping costs. Besides materials and labor, manufacturing costs include setup, processing, and inspection costs. ComfyFootware ships 40 pairs of sandals per shipment. ComfyFootware uses activity-based costing and has classified all overhead costs for the month of June as shown in the following chart:
Cost type
Denominator Activity
Rate
Manufacturing:
Setup
Setup-hours
$12 per setup-hour
Processing
Direct manufacturing labor-hours
$1.20 per DMLH
Inspection
Number of pairs of sandals
$0.90 per pair
Nonmanufacturing:
Marketing and general administration
Sales revenue
8%
Shipping
Number of shipments
$10 per shipment
Tasks:
1. Prepare each of the following for June:
a. Revenues budget
b. Production budget in units
BU315
Project
6
Description/Requirements of Project
Evaluation Criteria
c. Direct material usage budget and direct material purchases budget in both units and dollars; round to dollars
d. Direct manufacturing labor cost budget
e. Manufacturing overhead cost budgets for processing and setup activities
f. Budgeted unit cost of ending finished goods inventory and ending inventories budget
g. Cost of goods sold budget
h. Marketing and general administration costs budget
2. ComfyFootwares balance sheet for May 31 is as follows. Use it and the following information to prepare a cash budget for ComfyFootware for June. Round to dollars.
o All sales are on account; 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts.
o All purchases of materials are on account. ComfyFootware pays for 80% of purchases in the month of purchase and 20% in the following month.
o All other costs are paid in the month incurred, including the declaration and payment of a $10,000 cash dividend in June.
o ComfyFootware is making m

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT ??

CLICK BUTTON TO ORDER NOW