Week Three Assignment

acc206_guidance_report_week_three.xlsx

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Student Guidance Report

		Ashford University ACC206
		Guidance Report
		Week Three
LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT
			YELLOW INDICATES ACCOUNT AMOUNTS CHANGED
			Change Account to:
			Change to: Based Upon Course Start Date
Exercise/ Problem	Account to be changed	Original Amount	Jan - Feb	Mar - Apr	May - Jun	Jul - Aug	Sep - Oct	Nov - Dec
Ch 4 Ex 4	Materials Job 241	26000	27000	28000	29000	30000	31000	32000
	Estimated Direct labor cost	620000	630000	640000	650000	660000	670000	680000
	Labor Job 242	24000	25500	27000	28500	30000	31500	33000
	Actual Factory Overhead	967500	947500	927500	907500	887500	867500	847500
	Questions	YOUR ANSWERS BASED UPON COURSE START DATE
	a. Uniflex’s overhead application rate. (This rate needs to be recalculated because the labor has changed.)
	b. The balance of the Work in Process account on January 31, 20X5.
	Job 241
	Material
	Labor
	Overhead
	Total
	Job 242
	Material
	Labor
	Overhead
	Total
	c. The amount of over- or underapplied overhead for 20X5.
	Indicate whether overhead was overapplied or underapplied.
AUDIO/VIDEO EX 5 <<<<CLICK HERE
Ch 4, Pb 2	Account to be changed	Original Amount
	Work in process May 1 balance	35200	36700	38200	39700	41200	42700	44200
	Work in process job 101	20400	20500	20600	20700	20800	20900	21000
	Direct materials job 115	165	215	265	315	365	415	465
	Direct labor incurred job 116	191	266	341	416	491	566	641
		YOUR ANSWERS BASED UPON COURSE START DATE
	a. Compute the total overhead applied to production during May.
	b. Compute the cost of the ending work in process inventory.
	Job # 115
	Material
	labor
	Overhead
	Total
	c. Compute the cost of jobs completed during May.
	Job 101
	Beginning work in process
	Material
	labor
	Overhead
	Total
	Job 103
	Beginning work in process
	Material
	labor
	Overhead
	Total
	Job 116
	Beginning work in process
	Material
	labor
	Overhead
	Total
	Job Other
	Beginning work in process
	Material
	labor
	Overhead
	Total
	d. Compute the cost of goods sold for the year ended May 31.
	Beginning cost of goods sold
	Cost of jobs sold during the month
	Job no. 101 (total costs above)
	Three "other" jobs
	Direct material
	Direct labor
	Factory overhead
	(150% of direct labor)
	Total cost of goods sold
Ch 5, Pb 2	Sale price	15	17	19	21	23	25	27
	Increase selling price	18	19	20	21	22	23	24
		YOUR ANSWERS BASED UPON COURSE START DATE
	a. Calculate break even in units
	b. Target sales to earn profit of $90,000
	c. Increase in the selling price to $18 per unit
	calculate break even with a profit of $90000
	d. Complete the blanks below with
	“increase,” “decrease,” or “not affect.”
	1) An increase in direct labor cost will:
	total variable costs,
	contribution margin
	break even point
	2) An increase in plant insurance will:
	break even point
	dollar sales level calculated in part (b).
Reference Video
Ch 5, Pb 3
	Account to be changed	Original Amount
	Sale price	40	41	42	43	44	45	46
		YOUR ANSWERS BASED UPON COURSE START DATE
	a. 20X4 break-even point in dollars
	20X4 break-even point in units
	b. Sales needed in 20X5
	to earn net income of 14,400
	c. how much does each unit provide
	toward covering FRB’s fixed costs?
	What alternatives are available to
	increase this amount?
	d. break even point if salary reduced
	and sale commision increased?
	Account to be changed	Original Amount
Ch 5 Pb 4		Book amounts
	Variable cost	4	4.25	4.5	4.75	5	5.25	5.5
	Sales commsion	0.06	0.07	0.08	0.09	0.1	0.11	0.12
		YOUR ANSWERS BASED UPON COURSE START DATE
	a. Number of units that Quebec
	sold in excess of its break-even point
	b. Compute the dollar sales needed
	next year to produce a target income
	of $492,000. This amount is multiplied by the unit sales price.
	c. Change to costs if salary changed to $60,000
	plus 6% commision based on gross sales.
	1) By how much would the company have been
	better off financially if the new plan had been
	adopted for the year just ended? By how much?
	2) What effect might paying a commission have
	on gross sales? Briefly explain.
	d. In addition to the compensation plan
	described in part (c), Quebec is studying
	the impact of other operating changes as well.
	State whether you agree or disagree
	with the following findings of a newly hired
	staff accountant:
	1) A rise in property taxes will
	increase the break-even point.
	2) A decrease in raw material cost will increase
	the contribution margin and
	decrease total fixed costs.