5-2 Final Project II Milestone One: Budgets
ChrisBo89
ACC311FinalProjectPt1.xlsxINSTRUCTIONS
| Southern New Hampshire University | ||
| ACC 207 COST ACCOUNTING | ||
| INSTRUCTIONS FOR FINAL PROJECT I (Due in Module Three) | ||
| IMPORTANT NOTE: Make sure to completely review the Final Project I Rubric. | ||
| ITEMS TO COMPLETE FOR THIS PROJECT: | ||
| PROMPT | ||
| You are the new cost accountant at SRS. In your new position, you have been asked to perform a few tasks for the company’s leadership team. Use the scenario info in the table below: | ||
| A: Create an overview diagram using whichever flowchart or diagram tool you feel most comfortable with. Paste it on the OVERVIEW DIAGRAM sheet. | ||
| B: Prepare journal entries to summarize the 2017 transactions. | ||
| As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to the Cost of Goods Sold (COGS) account. Assume COGS given of $4,020 does not include the write off of overallocated manufacturing overhead. Use the template on the JOURNAL ENTRIES sheet. | ||
| C: Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated. Use the template on the T-ACCOUNTS sheet. | ||
| D: How did the SRS Educational Press perform in 2017? Should the company continue to have in-house press production? Support your answer with relevant data. Type your answer on the PERFORMANCE sheet. | ||
| SRS COST DATA | ||
| · Direct materials and supplies purchased on credit: $800 | ||
| · Direct materials used: $710 | ||
| · Indirect materials issued to various production departments: $100 | ||
| · Direct manufacturing labor: $1,300 | ||
| · Indirect manufacturing labor incurred by various production departments: $900 | ||
| · Depreciation on building and manufacturing equipment: $400 | ||
| · Miscellaneous manufacturing overhead incurred by various production departments: $550 | ||
| o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.) | ||
| · Manufacturing overhead allocated at 160% of direct manufacturing labor costs: ? | ||
| · Cost of goods manufactured: $4,120 | ||
| · Revenues: $8,000 | ||
| · Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead): $4,020 | ||
| · Inventories, December 31, 2016 (not 2017): | ||
| o Materials control: $100 | ||
| o Work-in-process control: $60 | ||
| o Finished goods control: $500 | ||
OVERVIEW DIAGRAM
/xl/drawings/drawing1.xml#'OVERVIEW%20DIAGRAM'!A1JOURNAL ENTRIES
/xl/drawings/drawing1.xml#'JOURNAL%20ENTRIES'!A1T-ACCOUNTS
/xl/drawings/drawing1.xml#'T-ACCOUNTS'!A1PERFORMANCE
/xl/drawings/drawing1.xml#PERFORMANCE!A1OVERVIEW DIAGRAM
| OVERVIEW DIAGRAM | ||
| Paste your image below | ||
BACK TO INSTRUCTIONS
/xl/drawings/drawing2.xml#INSTRUCTIONS!A1JOURNAL ENTRIES
| JOURNAL ENTRIES | ||||
| 1 | Manufacturing Control | $100.00 | ||
| Materials | $100.00 | |||
| 2 | Manufacturing OH control | $400.00 | ||
| Depreciation | $400.00 | |||
| 3 | Costs of Goods Sold | $4,020.00 | ||
| Finished Goods | $4,020.00 | |||
| 4 | WIP control | $2,080.00 | ||
| Manufacturing Overhead Allocated | $2,080.00 | |||
| 5 | Materials Control | $800.00 | ||
| Payables Control | $800.00 | |||
| 6 | Accounts Receivable | $8,000.00 | ||
| Revenues | $8,000.00 | |||
| 7 | Manufacturing OH | $2,080.00 | ||
| Manufacturing Overhead Control | $1,950.00 | |||
| Goods sold | $130.00 | |||
| 8 | Finished Goods Control | $4,120.00 | ||
| Work-in-Process Control | $4,120.00 | |||
| 9 | Manufacturing OH | $550.00 | ||
| Miscellaneous | $550.00 | |||
| 10 | WIP Control | $1,300.00 | ||
| Manugacturing OH Control | $900.00 | |||
| Wages control | $2,200.00 | |||
| 11 | WIP Control | $710.00 | ||
| Materials Control | $710.00 | |||
BACK TO INSTRUCTIONS
/xl/drawings/drawing3.xml#INSTRUCTIONS!A1T-ACCOUNTS
| T-ACCOUNTS | |||||
| Materials Control | |||||
| Start of year | $100.00 | $710.00 | WIP | ||
| Payables | $800.00 | $100.00 | Manufacturing OH | ||
| End Year | $90.00 | ||||
| Work-in-Process Control | |||||
| Start of year | $60.00 | $4,120.00 | Finished Goods | ||
| Wages control | $1,300.00 | ||||
| Materials control | $710.00 | ||||
| Manufacturing OH | $2,080.00 | ||||
| End Year | $30.00 | ||||
| Finished Goods Control | |||||
| Start of year | $500.00 | $4,020.00 | Goods sold | ||
| WIP | $4,120.00 | ||||
| End Year | $600.00 | ||||
| Cost of Goods Sold | |||||
| Start of year | - | $130.00 | Manufacturing OH | ||
| Finished Goods | $4,020.00 | ||||
| End Year | $3,890.00 | ||||
| Manufacturing Overhead Control | |||||
| start of year | - | $1,950.00 | OH Control | ||
| Materials | $100.00 | start of year | - | ||
| Wages | $900.00 | Wages control | $900.00 | ||
| Depreciation | $400.00 | materials control | $100.00 | ||
| Payables | $550.00 | Accounts Payable | $550.00 | ||
| End Year | - | Depreciation | $400.00 | ||
| End Year | - | ||||
| Manufacturing Overhead Allocated | |||||
| Start of year | - | $2,080.00 | WIP | ||
| Allocated Manufacturing OH | $2,080.00 | ||||
| End Year | - | ||||
BACK TO INSTRUCTIONS
/xl/drawings/drawing4.xml#INSTRUCTIONS!A1PERFORMANCE
| PERFORMANCE |
| 1) How was the SRS Educational Press performance in 2017? In 2017, SRS performed well and this is indicated by the company's grosss margin of $4110. This figure is calculated by subtrcating the cost of goods sold from the total revenues for the year. That is, $8000-3890 = 4110. The profit margin for the year is obtained by dividing the gross margin of 4110 by the total revenues of 8000. The answer will be 51.4%. Since the year's overhead was 7% and the profit margin is above 30%, then the company performed well. |
BACK TO INSTRUCTIONS
/xl/drawings/drawing5.xml#INSTRUCTIONS!A1
