60724_1_ACCT-346-Project-for-Students-v1.3.xlsx - Transtutors.com by hedongchenchen

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									ACCT 346
Student Name                     Maria Martinez
Bravo Baking Company began operations in May of 2010 with the production and sales of specialit
The company has experienced a good market demand for its high protein, low carbohydrate product
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's c
the local retailers, have been asking for more specialty breads from the company. The decision to e
in the coming weeks.

Weekly Assignments: Complete the assigned Tab each week.
In each worksheet there are several Green colored cells. These cells must be filled in with your resp

                                                                         Points
                                                                Due     Available
Tab1) Product vs. Period Costs                                 Week 1      10
Tab 2) Cost of Goods Manufactured Schedule                     Week 2      30
Tab 3) Break Even Analysis                                     Week 3      40
Tab 4) Incremental Analysis                                    Week 5      40
Tab 5) Capital Budgeting                                       Week 6      40
Tab 6) Variance Analysis                                       Week 7      40
                                                                          200
uction and sales of speciality breads.
n, low carbohydrate product called "Hi-Lo"
product, however, Bravo's customers,
 ompany. The decision to expand will be made




st be filled in with your response.

           Points
           Earned
            10.00
            30.00
            40.00
            20.00
             0.00
             0.00
            100.00 Total
ACCT 346
Student Name                        Maria Martinez
For Tables A : From the list below, identify if the cost item is a
"Product Cost" or "Period Cost" by typing "Product" or "Period" in the
appropriate box.                                                       10 points
Table A                             Enter either "Product" or "Period"
Flour used in baking bread                           Product             Correct
Factory Supervisor Salaries                          Product             Correct
Bakers wages                                         Product             Correct
Rent for Executive Offices                            Period             Correct
Sales Commissions                                     Period             Correct
Utilities used in the factory                        Product             Correct
Advertising costs                                     Period             Correct
Delivery truck costs                                  Period             Correct
Paper wrappers for bread                             Product             Correct
Depreciation on bake ovens                           Product             Correct
Eggs, salt, water used for baking                    Product             Correct
Interest on bank loan                                 Period             Correct
Factory Insurance                                    Product             Correct
For Table B: From the list below, identify if the cost item is a "Direct
Cost" or "Indirect Cost" by typing "Direct" or "Indirect" in the
appropriate box.
Table B                                     Enter either "Direct" or "Indirect"
Flour used in baking bread                          Direct          Correct
Factory Supervisor Salaries                        Indirect         Correct
Bakers wages                                        Direct          Correct
Factory Insurance                                  Indirect         Correct
Rent for Factory                                   Indirect         Correct
Utilities used in the factory                      Indirect         Correct
Cleaning Bake Ovens                                Indirect         Correct
Insurance on Factory                               Indirect         Correct
Paper wrappers for bread                            Direct          Correct
Depreciation on bake ovens                         Indirect         Correct
Eggs used for baking                                Direct          Correct
Small amounts of salt used                         Indirect         Correct
Factory Insurance                                  Indirect         Correct
                                                        Points         10.00
ACCT 346
Student Name                         Maria Martinez
Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of
Green shaded cells.
Table C
Materials used in baking bread                   32,000 Correct
Factory Supervisor Salaries                        20,000
Bakers wages                                     $32,000
Rent for Executive Offices                         36,000
Sales Commissions                                  10000
Utilities used in the factory                       5000
Advertising costs                                  12000
Delivery truck costs                               25000
Depreciation on bake ovens                            500
Interest on bank loan                                 250
Beginning Inventory Materials                      10,000
Beginning Work in Process                           8000
Ending Inventory Materials                          4000
Inventory Purchases                                26000
Ending Work in Process                              2500
Other Overhead costs                                1200
Beginning Finished Goods Inventory                  7500
Ending Finished Goods Inventory                     6000
Rent for Factory                                    7500




                                                                                 Materials Used
                                                                                 Direct Labor
                                                                                 Overhead
                                                                                 Factory Rent
                                                                                 Depreciation on bake ovens
                                                                                 Utilities used in Factory
                                                                                 Other Overhead costs
                                                                                 Total Overhead
                                                                                 Total Manufacturing Costs
                                                                                 Total Work in Process
                                                                                 Less: Ending Work in Process
                                                                                 Cost of Goods Manufactured
Goods Available for Sale
Less: Ending Finished Goods Inventory
Cost of Goods Sold Schedule
actured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values in the
                                                                                                     (TCO 2)   30 points
            Cost of Goods Manufactured Schedule
            Beginning Work In Process                                           $8,000 Correct
            Materials
            Beginning Inventory Materials               $10,000   Correct
            Plus: Purchases                             $26,000   Correct
            Materials Available                         $36,000   Correct
            Less: Ending Inventory Materials             $4,000   Correct
            Materials Used                                          $32,000 Correct
            Direct Labor                                            $32,000 Correct
            Overhead
            Factory Rent                                 $7,500   Correct
            Depreciation on bake ovens                    $500    Correct
            Utilities used in Factory                    $5,000   Correct
            Other Overhead costs                         $1,200   Correct
            Total Overhead                                          $14,200 Correct
            Total Manufacturing Costs                                         $78,200   Correct
            Total Work in Process                                             $86,200   Correct
            Less: Ending Work in Process                                       $2,500   Correct
            Cost of Goods Manufactured                                        $83,700   Correct

            Complete only the Green cells. Values in Red are from the schedule above.
            Cost of Goods Sold Schedule
            Beginning Finished Goods Inventory                                             $7,500 Correct
            Beginning Work In Process                                          $8,000   Correct
            Materials
            Beginning Inventory Materials               $10,000 Correct
            Plus: Purchases                             $26,000 Correct
            Materials Available                         $36,000 Correct
            Less: Ending Inventory Materials             $4,000 Correct
            Materials Used                                         $32,000 Correct
            Direct Labor                                           $32,000 Correct
            Overhead
            Factory Rent                                 $7,500 Correct
            Depreciation on bake ovens                     $500 Correct
            Utilities used in Factory                    $5,000 Correct
            Other Overhead costs                         $1,200 Correct
            Total Overhead                                         $14,200 Correct
            Total Manufacturing Costs                                         $78,200   Correct
            Total Work in Process                                             $86,200   Correct
            Less: Ending Work in Process                                       $2,500   Correct
            Cost of Goods Manufactured                                        $83,700   Correct
Goods Available for Sale                 $91,200 Correct
Less: Ending Finished Goods Inventory     $6,000 Correct
Cost of Goods Sold Schedule              $85,200 Correct
                                        Points      30.00
ACCT 346
Student Name                             Maria Martinez
Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO
Units produced                               14,000

Table A                                  Variable Fixed
Materials used in baking bread                 2.29
Factory Supervisor Salaries                    0.12
Bakers wages                                   2.29
Rent for Executive Offices                                    3,000
Sales Commissions                                             3500
Utilities used in the factory                  0.50
Advertising costs                                              1000
Delivery truck depreciation                                     400
Depreciation on bake ovens                     0.07
Interest on bank loan                                           500

Total Costs                                   $5.26       $8,400.00


Price Charged per unit                        $7.89
unit of product and its monthly operating costs. (TCO 4)                               40 Points

            Part I Enter your solution in the green cells for each of the following:
            Using the costs from Table A compute
            A) Breakeven units (rounded to 2 decimal places)                              3193.92   Correct
            B) Break-even sales dollars                                                  25200.00   Correct
            C) Contribution Margin                                                           2.63   Correct
            D) Contribution Margin Ratio (%)                                                 0.33   Correct

            Part II Complete the following requirements
            A) If Bravo requires a profit of $5,000 how many units must it sell?          5095.06 Correct
            B) What is the total revenue from A above?                                   40200.00 Correct
            C) If Bravo actually sells 8,000 units
             1) What is the margin of safety in Dollars?                                 37920.00 Correct
             2) What is the margin of safety percentage?                                     0.60 Correct




            Total Correct
                                                                                       Points             40
            Hint: use spreadsheet formulas to compute your answers
ACCT 346
Student Name                               Maria Martinez
Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last qua

Product                                     Hi-Lo      Whole Grain Fruit & Nuts Total
Revenues                                       $67,575      $31,800      $15,900 $115,275
Variable product costs                         $27,030      $12,720       $6,360 $46,110
Variable Selling & Administrative costs        $13,515       $6,360       $3,180 $23,055
Contribution Margin                           $27,030         $12,720        $6,360     $46,110
Fixed Product Costs                            $5,000          $5,000        $5,000     $15,000
Fixed Selling and Administrative Costs         $5,700          $2,850        $2,850     $11,400
Allocated Common Costs                         $5,000          $2,500        $2,500     $10,000
Net Income                                    $11,330          $2,370        -$3,990     $9,710



Required:      Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.
If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.
Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.
What woud you advise Bravo to do?
Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.
Product                                      Hi-Lo      Whole Grain Fruit & Nuts Total
Revenues                                        $67,575        $31,800            $0 $99,375 Correct
Variable product costs                          $27,030        $12,720            $0 $39,750 Correct
Variable Selling & Administrative costs         $13,515         $6,360            $0 $19,875 Correct
Contribution Margin                           $27,030         $12,720             $0    $39,750 Correct
Fixed Product Costs                                                               $0
Fixed Selling and Administrative Costs                                            $0
Allocated Common Costs                                                            $0
Net Income                                                                        $0
                                                                                       Points           20
erating results for the last quarter are provided below.   (TCO 7)   40 Points




t & Nuts product.




uts product.
ACCT 346
Student Name                                  Maria Martinez
Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.
The new unit has a larger capacity and Bravo estimates it can produce and sell an more bread each year. From these
the after tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electri
However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,0
expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can
Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo

Use the format below to complete the NPV computations:
(Note: Use PV Tables on pages 342 and 343. Also, be sure to show costs as negative values)

                                              Cash                  PV                         PV
                                              Flow                  Factors                  Amounts
Cost of new refrigeration unit
After tax cash flow
Annual electricity savings
Additional annual maintenance costs
Amount collected from disposal of unit
 Net present value
                                                                                             Points
of its bread.
d each year. From these additional sales
 ill save $1,200 in electricity each year.      TCO 9
 t of the new unit is $25,000 and it is         40 Points
ully depreciated and can be disposed at cost.
 n of 14%. Should Bravo purchase the freezer?




                   0
ACCT 346
Student Name                                  Maria Martinez

Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo
Standard Cost per unit                        Cost /Unit       Amount/Unit Standard Cost
Material Cost (Ingredients) (.5 lbs)                     2.29     .5 lbs          $4.58
Direct Labor( .25 hrs * $9/hr)                           2.25    .25 hrs          $9.00
Overhead                                                 0.57
                     Total                               5.11

During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo
purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs w


Required:
Part a . Compute the material price and quantity variance.

Material Price Variance =
                                                                        =   (                -
                                                                    =                    Fav/Unf >

Material Quantity Variance =
                                                                        =   (                -
                                                                    =                     Fav/Unf

Labor Rate Variance =
                                                                        =   (                -
                                                                    =                    Fav/Unf >

Labor Efficiency Variance =
                                                                        =   (                -
                                                                    =                     Fav/Unf
                                        TCO 10
                                        40 Points

 se in determining Bravo's variances.




ng the month, Bravo
 and actual labor costs were $19,998




            )      *




            )      *




            )      *




            )      *


                                                    Points   0

								
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