Unit III Project

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Title of the Paper Goes Here

Student Name

Institution

ACC 5301 Management Applications of Accounting

Instructor

Date

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 Establish Cookie Business

Identify the name of your company, location, mission statement for your business, and type of cookie you plan to make. Keep in mind that you are only making one type of cookie for this project.

Part 2 Costing and Sales Information

Analyze and discuss the estimated cost per cookie using job order costing, the estimated cost per cookie using process costing, and the estimated sales price per cookie. Embed your spreadsheets to justify your costs.

Part 3 Compare and Contrast Costing Methods

Analyze and discuss the major differences you see between the types of costing. Which do you believe is more useful for this business, and why?

Part 4 Impact of Increase and Decrease in Sales

Discuss what will happen to revenue if the number of cookies sold increases or decreases.

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.

Assignment Objective: In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a series of reports and analyzing the results using the template provided to guide you through the project. You will:

1. Gain an understanding of product costing (direct materials, direct labor, and overhead).

2. Review job order costing.

3. Review process costing.

4. Make business decisions based on analyzing accounting data.

Length: You will prepare a three- to four-page written report (including spreadsheets) using the Unit III Project Template. 

References: At least two peer-reviewed sources are required. Resources used are required to be scholarly/academic in nature and found in the CSU Library. APA Style is required for citations and references. 

Details: First, start the paper with an introduction section per the assignment template provided above.

Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

· Create a name and establish a location for the business.

· Construct a mission statement for the business.

· Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies (this is the first and only order).

· Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials. Research and identify the cost of wages for your two employees as your direct labor. It typically takes two days to make 1,000 cookies.

· For process costing, examine the costs per 1,000 cookies looking at these top three processes (departments): Mixing, Add-ins, Packaging.

· The Mixing Department will be examined in depth (only do this department).

· All materials will be added in at the beginning of the process.

· The cookies will be in the Mixing Department for a total of 8 hours (use two employees, 4 hours each as your direct labor). The cookies will be 100% complete with respect to materials, and only be 40% complete with respect to conversion costs (labor and overhead) before they are transferred to the Add-ins Department. Manufacturing overhead is 30% of direct labor costs.

· Estimate and explain the sales price you plan to set per cookie based on the cost data.

Part 3: Define job order and process costing. Then, compare and contrast the costing methods used in this project (job order vs. process costing), including which you believe provides the most useful information as a manager.

Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.

Unit III Project

Cookie Business

This project measures your mastery of ULOs 2.1, 3.5, and 3.6. 

Assignment Objective: In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a series of reports and analyzing the results using the template provided to guide you through the project. You will:

1. Gain an understanding of product costing (direct materials, direct labor, and overhead).

2. Review job order costing.

3. Review process costing.

4. Make business decisions based on analyzing accounting data.

Length: You will prepare a three- to four-page written report (including spreadsheets) using the Unit III Project Template. 

References: At least two peer-reviewed sources are required. Resources used are required to be scholarly/academic in nature and found in the CSU Library. APA Style is required for citations and references. 

Details: First, start the paper with an introduction section per the assignment template provided above.

Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

· Create a name and establish a location for the business.

· Construct a mission statement for the business.

· Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies (this is the first and only order).

· Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials. Research and identify the cost of wages for your two employees as your direct labor. It typically takes two days to make 1,000 cookies.

· For process costing, examine the costs per 1,000 cookies looking at these top three processes (departments): Mixing, Add-ins, Packaging.

· The Mixing Department will be examined in depth (only do this department).

· All materials will be added in at the beginning of the process.

· The cookies will be in the Mixing Department for a total of 8 hours (use two employees, 4 hours each as your direct labor). The cookies will be 100% complete with respect to materials, and only be 40% complete with respect to conversion costs (labor and overhead) before they are transferred to the Add-ins Department. Manufacturing overhead is 30% of direct labor costs.

· Estimate and explain the sales price you plan to set per cookie based on the cost data.

Part 3: Define job order and process costing. Then, compare and contrast the costing methods used in this project (job order vs. process costing), including which you believe provides the most useful information as a manager.

Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.

End this paper with the key observations and present any future recommendations.

Use the Unit III Cookie Project Spreadsheet Templates for your job order, and process costing spreadsheets to be embedded in your case study document.