Management Applications of Accounting Unit VII Final Project
Unit VII Final Project
Instructions
Cookie Business Final Project
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project.The learning objectives of this project are as follows:
- Apply accounting concepts and standards to the creation of accounting information and reports.
- Analyze accounting information used to make strategic business decisions.
- Apply ethical behavior to accounting-related situations.
- Make business decisions based on analyzing accounting data.
Using the
Unit VII Final Project Template
, prepare a four- to five-page written report (including spreadsheets) with at least three scholarly sources. Your report will provide the following information:
Introduction
Part 1: Based on the data presented in the
Unit VII Spreadsheet Template
in Excel (CM Breakeven tab):
- Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
- Calculate the weighted average CM.
- Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
- Calculate the value of ending inventory under full or absorption costing.
- Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order.Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
- Calculate the material variances.
- Calculate the labor variances.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
Conclusion and Recommendations
Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.Be sure to use APA formatting throughout, and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report.
on time mbagood work
1
5
Title of the Paper Goes Here
Student Name
Institution
ACC 5301 Management Applications of Accounting
Instructor
Date
Abstract
The abstract
is an overview of the paper, written after completion. Other researchers use the abstract to determine if your work will be useful to them. The abstract should include the background, hypothesis or research question, methodology for data collection and analysis, the findings of your research, and conclusions. It should be between 100–150 words. This is done when the paper is complete.
Title of Paper
Remember this part of the paper is double spaced in APA format.
The
Introduction should lead readers into the topic and its importance. Introductions typically include the overall topic of the paper, the specific focus of the paper within the larger topic, the main points in the paper, the kind of paper (study, argument, critique, discussion), and the purpose.
Writing tip: The length of the introduction should be in proportion to the length of the paper. Also ask yourself, “With my purpose and my audience, how do I engage my readers best?” In the introduction, you set the tone of the piece, establish your voice, and demonstrate your writing style; be authentic to your purpose and your audience.
Part 1 Contribution Margin/Breakeven
Embed your spreadsheet for this section here and discuss the results.
Part 2 Full and Variable Costing
Embed your spreadsheet for this section here and discuss the results.
Part 3 Special Order
Embed your spreadsheet for this section here and discuss the results.
Part 4 Internal Rate of Return
Embed your spreadsheet for this section here and discuss the results.
Part 5 Cash Budget
Embed your spreadsheet for this section here and discuss the results.
Part 6 Material and Labor Variance
Embed your spreadsheet for this section here and discuss the results.
Conclusions and Recommendations
The conclusion
section
should summarize for the readers the topics of importance that led to your final conclusions/analysis regarding this case. Include some specific areas of focus from your analysis to reinforce your conclusion.
References
Include complete references in proper APA format for all of the citations
listed in your paper. Be sure to use the library for the required number of sources. Additional sources can be used but should be scholarly. Present your references in alphabetical order.
>CM Breakeve , 00,000
0,000
00,000
80,000
90,000.00
.00
,200.00
5,000.00
Cookie Business 0
9,000.00
2,780,000 Cookie Business 1,000 $ 3.75 0.00
Cookie Business .00
n 1 7 2 3 18
4 21
5 18
6 14
7 8 9 10 11 12 13 14 15 Cookie Business $ 250,000 January Total Cookie Business 30 31 45 40n
Cookie Business
Chocolate Chip
Sugar
Specialty
Total
Units Sold
1
5
9
8
3
2,
7
Sales
$ 1,875,000.00
$ 882,000.00
$ 1,050,000.00
$ 3,807,000.00
Less: Variable Costs
$
6
$ 205,800.00
$ 8
1,000
$ 976,800.00
Contribution Margin
$ 1,185,000.00
$ 676,200.00
$ 969,000.00
$ 2,8
30
Less: Common Fixed Costs
$
12
Profit
$ 2,705,200.00
Per item Contribution Margin
Weighted Average Contribution Margin
Break-even point in units
Full Variable
Productions Costs:
Direct material
$ 0.60
Direct labor
$ 1.00
Variable manufacturing overhead
$ 0.
4
Total variable manufacturing costs per unit
$ 2.00
Fixed manufacturing overhead per year
$
13
In addition, the company has fixed selling and administrative costs:
Fixed selling costs per year
$ 50,000.00
Fixed administrative costs per year
$ 65,000.00
Selling price per cookie
$ 3.75
Number of cookies produced
Number of cookies sold
2,600,000
Full (absorption) costing :
Full cost per unit
Ending Inventory Full (absorption) costing
Variable costing :
Variable cost per unit
Ending Inventory Variable costing
Special Order
Number of cookies needed
Discounted price per cookie
$ 2.75
Normal price per cookie
Cost of special printed design per cookie
$ 0.50
Cost of tool needed to make the design
$
10
Revenue for special order
Costs for special order:
Design cost
Tool cost
Total Variable Manufacturing Cost
Net profit
IRR
As the owner of the Cookie Business, you are considering the following investment:
PV of Annuity Table
Purchase of new equipment
$ 250,000
1%
2%
3%
4%
5%
6%
8%
10%
12%
Expected annual increase in sales
$ 48,017.50
0.9901
0.9804
0.9709
0.96
15
0.9524
0.9434
0.9259
0.9091
0.8929
Time frame
years
1.9704
1.9416
1.9135
1.8861
1.8594
1.8334
1.7833
1.7355
1.6906
Acceptable rate needed
9%
2.941
2.8839
2.8286
2.7751
2.7233
2.673
2.5771
2.4869
2.
40
3.902
3.8077
3.7171
3.6299
3.546
3.4651
3.
31
3.1699
3.0374
Calculate the Internal Rate of Return:
4.8534
4.7135
4.5797
4.
45
4.3295
4.2124
3.9927
3.7908
3.6048
PV of annuity factor
5.7955
5.60
14
5.4172
5.2421
5.0757
4.9173
4.6229
4.3553
4.
11
Internal rate of return
6.7282
6.472
6.2303
6.0021
5.7864
5.5824
5.2064
4.8684
4.5638
7.6517
7.3255
7.0197
6.7327
6.4632
6.2098
5.7466
5.3349
4.9676
Accept or reject
8.566
8.1622
7.7861
7.4353
7.1078
6.8017
6.2469
5.759
5.3283
9.4713
8.9826
8.5302
8.1109
7.7217
7.3601
6.7101
6.1446
5.6502
10.3676
9.7869
9.2526
8.7605
8.3064
7.8869
7.139
6.4951
5.9377
11.2551
10.5753
9.954
9.3851
8.8633
8.3838
7.5361
6.8137
6.1944
12.1337
11.3484
10.635
9.9857
9.3936
8.8527
7.9038
7.1034
6.4236
13.0037
12.1063
11.2961
10.5631
9.8986
9.295
8.2442
7.3667
6.6282
13.8651
12.8493
11.938
11.1184
10.3797
9.7123
8.5595
7.6061
6.8109
Cash Budget
The budgeted credit sales are as follows:
December last year
January
$ 125,000
February
$ 300,000
March
$ 90,000
Collection:
Month of the sale
80%
Month following the sale
20%
Estimated cash receipts
February
March
Last month’s sales
Current month’s sales
Variances
Actual Total Cost of Direct Materials
$ 225,000
Standard Total Cost of Direct Materials
$ 224,800
Actual Materials Used
Standard Materials Used
Actual Direct Labor Rate
$ 15.50
Standard Labor Rate
$ 15.00
Actual Hours Worked
Standard Hours Worked
Amount
Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance
Materials Quantity Variance
Calculate Labor Variances:
Labor Rate Variance
Labor Efficiency Variance
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