Accounting II Homework assignment help!!!

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ACC 227: Principles of Accounting II

Module 6 Homework Assignment

Directions: Please use an Excel Spreadsheet to present your homework (note: if you have a Mac, you may use Pages). Accounting homework cannot be accomplished in Microsoft Word. Please use the presentations that have been provided with the course as reference. Also, you may use the Generic Working Papers Excel Workbook found in the Course Resources to complete this assignment. Please visit the Course Resources section. Please note that you may have additional written homework alongside these application assignments.

Please complete the following exercises found at the end Chapter 21:

• Problem Set A: Problem 21-1A

Problem Set A: Problem 21-5A

Serial Problem: SP 21, Business Solutions (course-long project)

Please complete the following exercises found at the end Chapter 22:

• Problem Set A: Problem 22-2A

Problem Set A: Problem 22-5A

Serial Problem: SP 22, Business Solutions (course-long project)

COURSE-LONG PROJECT DIRECTIONS: This course contains a course-long project in which you will work on a variety of problems in regards to a computer services company called Business Solutions. Each module will build upon one another, so it is important to complete each part successfully.

Please note that there are 8 total parts to the course-long project. You will have 1 week to complete each part.

This course-long project is a serial problem taken from your textbook. You can view the problem starting in Chapter 13. It will continue through Chapter 25. Please use the Generic Working Papers Excel Workbook found in the Course Resources to complete this project.

COURSE-LONG PROJECT: PART VI (Module 6)

Scenario: On October 1, 2015, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2015.

Chapter 21: Serial Problem: SP 21, Business Solutions

Please complete the following:

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit: chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000.

Required

• Compute the selling price per composite unit.

Compute the variable costs per composite unit.

Compute the break-even point in composite units.

Compute the number of units of each product that would be sold at the break-even point.

Chapter 22: Serial Problem: SP 22, Business Solutions

Please complete the following:

Santana Rey expects second-quarter 2016 sales of her new line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 40 desk units (sales price of $1,250) and 20 chairs (sales price of $500).

Santana Rey believes that sales will increase each month for the next three months (April, 48 desks, 32 chairs; May, 52 desks, 35 chairs; June, 56 desks, 38 chairs) if selling prices are reduced to $1,150 for desks and $450 for chairs, and advertising expenses are increased by 10% and remain at that level for all three months. The products’ variable cost will remain at $750 for desks and $250 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,000, and other fixed expenses will remain at $6,000 per month.

Required

• Prepare budgeted income statements for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one-column for each month.

Use the budgeted income statements from part 1 to recommend whether Santa Rey should implement the proposed changes. Explain.