Accounting Journal Entries

profilebbwinwi
RChristACC202FinalProjectWorkbookM2.xlsx
Home>Business & Finance homework help>Accounting homework help>Accounting Journal Entries

Company Profile

Name Paws and Relax Dog Care
Location Milwaukee, WI
Vision To provide innovative, high-quality, consistent, value-for-money pet care.
Mission Our mission is to provide a healthy and positive grooming experience for your pet in a professional and stress-free environment.

Cost Classification

Milestone One
Direct Direct Manufacturing Period
Item/Cost Materials Labor Overhead Costs Fixed Variable
Groomer X X
Day care attendant X X
Kennel attendant X X
Receptionist X Does a receptionist work directly with any of the services?
Rent X X
Grooming table X These are one time costs for one specific service so you wouldn't allocate them to all services.
Grooming tub 48" X These are one time costs for one specific service so you wouldn't allocate them to all services.
Dog grooming arm (attaches to table) X These are one time costs for one specific service so you wouldn't allocate them to all services.
Cage bank: set of five X These are one time costs for one specific service so you wouldn't allocate them to all services.
Salon Tuff Capri mobile carry cart X These are one time costs for one specific service so you wouldn't allocate them to all services.
Shampoo (Crystal Clear: five-gallon pail) X X
Clipper(s) (two-speed) X X
Scissors (7-inch striaght, ear & nose) X X
Toys (used in day care only) X X
Bowls (used throughout the business) X X
Towels (used throughout the business) X X
Dryer X Same as lines 8-12 above.
Cleaning products (used throughout) X X Used by all services, not just one.
Rubberized flooring (day care) X These are not direct labor - one time costs for one particular service.
Fencing for day care area X These are not direct labor - one time costs for one particular service.
Installation of fencing X These are not direct labor - one time costs for one particular service.
12 kennels cost X
Depreciation on kennels X X
Utilties and Insurance X X
Heating System X This is tricky - the heating system itself is a one-time cost, but the depreciation on it would be allocated.
Depreciation on heating system X X
Loan X X This loan would be to fund all services.
Draw X X

Variable_Fixed

Milestone One
Determine the per-unit cost per dog
Grooming
Item Costs Item Costs
Shampoo $1.04 Groomer $2,080.00
Clipper(s) 1.37 Rent 30.95
Bowls 0.72 Loan 20.00
Towels 5.83 Utilties and Insurance 28.57
Scissors 1.01 Depreciation on heating system 3.95
Cleaning Products: Odoban 2.08
Cleaning Products: Simple Green 2.36
Draw 200.00
Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.92
Day Care
Item Costs Item Costs
Day care attendant 2.88 Rent 232.14
Toys 0.27 Loan 150.00
Bowls 0.19 Utilties and Insurance 214.29
Towels 1.40 Depreciation on heating system 29.64
Cleaning Products: Odoban 15.59
Cleaning Products: Simple Green 17.73
Draw 200.00
Total Variable Costs $ 4.75 Total Fixed Costs $ 859.39
Boarding
Item Costs Item Costs
Kennel attendant 5.62 Depreciation on kennels 80.00
Bowls 0.86 Rent 386.90
Towels 0.87 Loan 250.00
Utilties and Insurance 357.14
Depreciation on heating system 49.40
Cleaning Products: Odoban 25.98
Cleaning Products: Simple Green 29.55
Draw 200.00
Total Variable Costs $ 7.36 Total Fixed Costs $ 1,378.99

Contribution Margin Analysis

Prepare the Contribution Margin per Unit and Contribution Margin Ratio
Grooming Day Care Boarding
Sales Price $30.00 Sales Price $ 20.00 Sales Price $ 28.00
Variable Cost per unit $ 2.49 Variable Cost per unit $ 0.32 Variable Cost per unit $ 0.74
Contribution Margin $ 27.51 Contribution Margin $ 19.68 Contribution Margin $ 27.26
Where did you get your variable costs? These should be the values for these services from the Variable_Fixed tab.

Break-Even Analysis

Break-Even Analysis
Grooming Day Care Boarding
Break-even Units= 86 Break-even Units= 44 Break-even Units= 51
Fixed Costs $ 2,368.00 Fixed Costs $ 859.39 Fixed Costs $ 1,379.00
Cont. Margin $ 27.51 Cont. Margin $ 19.68 Cont. Margin $ 27.26
These units are off because your contribution margins are incorrect since your variable costs from the previous tab are incorrect.
Also, don't forget to calculate the number of units for the two profit levels given in the instructions as well as the break even units.

COGM Schedule

Business Name
Statement of Cost of Goods Manufactured
For the Month Ended January
Beginning work in process inventory $ - 0 Instructions - the following are the actual numbers for January
Direct Materials:
Materials - Beginning
Add: Purchases for month of January Purchased $5,000 in materials and you consumed 40%
Materials Available for use DL for January amounted to $6240
Deduct: Ending materials Factory OH 2,800
Materials used in production
Complete the Statement in proper form
Direct Labor
Factory Overhead
Total Manufacturing OH
Deduct: Ending work in process inv.
Cost of Goods Manufactured

Income Statement

Business Name
Income Statement
For the Month Ended January 31, 2017
Revenue:
Grooming
Day Care For Revenue instructor will provide you with the actual number of services based on your pricing levels
Boarding $ - 0 See the announcement at the end of module 4.
Cost of Goods Sold* $ - 0
Gross Profit $ - 0 Additional information necessary to complete income statement:
Expenses: General and Administrative Salaries paid $1,200
G&A Salaries Advertising $100
Advertising Cleaning products $120
Telephone Depreciation $83
Bank Charges Rent $650
Tax Expense Loan $420
Rent Utilities and insurance $600
Loan
Utilities and Insurance
Total Expenses $ - 0
Net Income/Loss $ - 0
*Cost of Goods Sold - same as COGM - there is no finished goods inventory to maintain

Variances

Prepare the variance analysis for the following, and show formulas in words and work:
Prepare for 1 month Significance (e.g., "favorable" or "unfavorable")
Groomer Direct Labor Time Variance
DL Time Variance = (AH - SH) x SR
Groomer Direct Labor Rate Variance
DL Rate Variance = (AR - SR) x AH
Direct Materials Efficiency
DM Quantity Variance = (AQ - SQ) x SP
Direct Materials Price Varaince
DM Price Variance = (AP- SP) x AQ
Use the website below for further help with variances:
http://accounting-simplified.com/management/variance-analysis/material/price.html
For the variance analysis use the following data