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ACT305: MANAGERIAL ACCOUNTING

Credit Hours: 3 Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is

covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 14-20 hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research.

COURSE DESCRIPTION AND OUTCOMES

Course Description: Accounting information from a management perspective: cost-based, decision-making, differential accounting and responsibility accounting. Recommended Prior Course: None Course Overview: Throughout this course, you will explore basic accounting principles for managerial purposes. Topics covered include managerial uses of accounting information, including product costing, decision making, differential accounting, and responsibility accounting. This is a basic course that aids in building a foundation for financial analysis and decision-making. Course Learning Outcomes:

1. Explain the role of managerial accounting in an organization. 2. Categorize types of business related costs and use the data to prepare a schedule of cost of goods

manufactured. 3. Calculate the flow of costs in both a job-order and a process costing system, and then prepare the

appropriate journal entries to record costs. 4. Identify the behavior of different types of costs incurred by businesses. 5. Explain the benefits of a break-even analysis. 6. Prepare several key budgets including: sales, production, direct materials, direct labor, manufacturing

overhead, cash budgets, and budgeted financial statements. 7. Utilize cost concepts to financial analysis processes to aid in operational decision making such as

resource deployment, new/existing product investment, and capital investments.

PARTICIPATION & ATTENDANCE

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor. Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical SAMPLE

problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible.

COURSE MATERIALS

Textbook Information is located in the CSU-Global Booklist on the Student Portal.

COURSE SCHEDULE

Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday.

• Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points.

• Opening Exercises: Take the opening exercise before reading each week’s content to see which areas you will need to focus on. You may take these exercises as many times as you need. The opening exercises will not affect your final grade.

• Mastery Exercises: Students may access and retake mastery exercises through the last day of class until they achieve the scores they desire.

• Critical Thinking: Assignments are due Sunday at 11:59 p.m. MT. • Live Classroom: Although participation is not required, Live Classroom sessions are held Weeks 1, 3, 5,

and 7. There are four total sessions.

WEEKLY READING AND ASSIGNMENT DETAILS

Module 1

Readings

• Prologue & Chapter 1 in Managerial Accounting • Institute of Management Accountants. (2008). Definition of management accounting. IMA Statements

on Management Accounting. Retrieved from: http://www.imanet.org/-/media/6c984e4d7c854c2fb40b96bfbe991884.ashx?as=1&mh=200&mw=200&hash=4E6AF697C021AA3EB0C358AE6FE2AEB1BCA992DE

• The Coca-Cola Company and Subsidiaries. (2017, July 26). Reconciliation of GAAP and non-GAAP financial measures qtr. 2, 2017. Retrieved from: http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2017-Q2-GAAP-NonGAAP-Schedules.pdf

Opening Exercise (0 points)

Discussion (25 points)

Live Classroom (0 points)

Mastery Exercise (10 points)

Critical Thinking: Classification of Costs and Operating Income Statement | Analyze the Income Statement (60 points)

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. SAMPLE

Option #1: Classification of Costs and Operating Income Statement Felix’s Fine Jewelry produces fine jewelry for department stores. The following costs incurred by the company may be classified as direct materials, direct labor, manufacturing overhead, or period costs.

a) Classify the costs and total by classification. b) Prepare an operating income statement which shows the deductions of expense in terms of total

classification by category: direct materials, direct labor, manufacturing overhead, or period costs. Assume Felix’s Fine Jewelry’s revenue for the period was $8,000,000, and there is no change in ending inventory.

c) In a few sentences, provide Felix’s with some suggestions to increase their operating margin based on the data provided.

a. Wages paid to jewelry workers $1,200,000 b. Utilities in the administrative area 300,000 c. Depreciation on chain linking machinery utilized in the plant 200,000 d. Silver, gold, and gemstones used in producing necklaces 4,000,000 e. Company attorney's salary 150,000 f. Lease rental charge on forklift for material and finished goods

handling 10,000

g. Telephone expense for customer service office 20,000 h. Wages of plant heating and cooling technicians 100,000 i. Utilities for the assembly area of the plant 250,000 j. Temporary administrative assistant help 1,500 k. Salary paid to the CEO 200,000 l. Environmental waste disposal fines 1,000,000 m. Signature red jewelry boxes used for packaging 50,000 n. Expedited freight of product to major customer 50,000

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 1 Critical Thinking grading rubric. Your paper should meet the following requirements:

• 1-2 pages in length including calculations • Formatted according to CSU-Global standards • All responses must comply with the CSU-Global Guide to Writing and APA Requirements.

Option #2: Analyze the Income Statement The following financial data pertains to Stellar Packaging Products, a US producer of coffee packaging for August 2016. The company’s revenue for the period was $3,000,000. The cost of goods sold was $1,750,000. Period costs incurred were $345,000. Requirements:

1. Recall that the gross margin percentage = gross margin/revenue, and operating profit margin = operating income/revenue. SAMPLE

a) Prepare an Excel format income statement to show the computation of Stellar Packaging’s gross margin and operating profit margin for the period ended August 31, 2016.

b) Using that information, compute the gross margin percentage and operating margin percentage. 2. Stellar Packaging’s closest publicly held competitor has a gross margin percentage of 30% and an

operating profit margin of 10%. Using this data, compare and contrast Stellar Packaging’s performance for the period ended August 31, 2016 to that of its competitor. What are some things you could note regarding relative production cost and relative period costs in this comparison? Which company performed better in the period in question? Explain your answer.

Your response to both questions should meet the following requirements:

• 1-2 pages in length including calculations • All responses must comply with the CSU-Global Guide to Writing and APA Requirements. Be sure to

review the Module 1 Critical Thinking grading rubric. Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document.

Module 2

Readings

• Chapters 2 & 3 in Managerial Accounting • Bamburi Cement Limited, a Division of Lafarge Holcim. (n.d.) All about cement: Manufacturing process.

Retrieved August 8, 2017 from: http://www.lafarge.co.ke/wps/portal/ke/2_2_3-Manufacturing_process • Institute of Management Accountants. (1986). Definition and measurement of direct material cost. IMA

Statements on Management Accounting. Retrieved from: https://www.imanet.org//-/media/fbd3c4cb91ca437ca63a27dde1239a7b.ashx?as=1&mh=200&mw=200&hash=02AD2C5264A9FD9D94C7801A84A25EB6A39F9D3D




Critical Thinking: Classifications of Costs | Cost of Goods Manufactured Statement (60 points)

Option #1: Classifications of Costs Hoover Inc. uses a job-order costing system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows:

Raw Materials Inventory $69,325 Work in Process Inventory $55,100 Finished Goods Inventory $81,256

During the year, the following transactions were completed:

a. Raw materials were purchased on account, $215,221. b. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 30%

indirect). c. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750;

and selling and administrative salaries, $72,340. d. Utility costs were incurred in the factory, $79,233. e. Advertising costs were incurred, $110,600. SAMPLE

https://portal.csuglobal.edu/fileman/files/schoology/courses/global/documents/CSU-Global-Guide-to-Writing-and-APA-Requirements.pdf

f. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities).

g. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets).

h. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost. i. Goods that cost $720,200 to manufacture according to their job cost sheets were transferred to the

finished goods warehouse. j. Sales for the year totaled $1,293,300 and were all on account. The total cost to manufacture these

goods according to their job cost sheets was $725,825. Submit your assignment as an Excel spreadsheet with each tab labeled by item number. Demonstrate the following:

1. Prepare the journal entries to record the transactions for the year. 2. Prepare the T-accounts for raw materials inventory, work in process inventory, finished goods inventory,

manufacturing overhead, and cost of goods sold. Don’t forget to enter the beginning balances in the inventory accounts.

3. Is manufacturing overhead under-applied or over-applied for the year? Prepare a journal entry to close this balance to cost of goods sold.

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 2 Critical Thinking grading rubric. Option #2: Cost of Goods Manufactured Statement Abbey Ltd., a British manufacturing company, produces a single product. The following information has been taken from the company’s production, sales, and cost records for the year just completed:

Production in units 51,000

Direct labor $120,325

Raw materials purchased $325,019

Manufacturing overhead $250,265

Selling and administrative expenses $422,100

Raw Materials, Beginning $62,900

Raw Materials, Ending $45,345

Work in Process, Beginning $52,984

Work in Process, Ending $58,777

Prepare the cost of goods manufactured statement. Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 2 Critical Thinking grading rubric. SAMPLE

Module 3

Readings

• Chapter 4 in Managerial Accounting • Institute of Management Accountants. (2014). Costing methodologies and cost management practices in

the Peoples’ Republic of China. Statements on Management Accounting. Retrieved from: https://www.imanet.org/insights-and-trends/strategic-cost-management/costing-methodologies-and-cost-management-practices-in-china?ssopc=1

• The two keys to consistent food cost management. (2016, November 9). Nation's Restaurant News. Retrieved from: https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1837542372?accountid=38569

• Controlling restaurant food costs. (2015, August 6). Nation's Restaurant News. Retrieved from: https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1702821143?accountid=38569

• Association of Chartered Certified Accountants (ACCA). (2011). Process costing. Retrieved from: http://www.accaglobal.com/content/dam/acca/global/pdf/sa_june11_process2.pdf





Critical Thinking: Production Cost Accounting –Weighted Average Method | Production Cost Accounting (60 points)

Option #1: Production Cost Accounting—Weighted Average Method Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August:

Production data:

Pounds in process, August 1; materials 100% complete; conversion 70% complete 3,000

Pounds started into production during August 85,000

Pounds completed and transferred out ?


Cost data:

Work in process inventory, August 1: Materials cost $900

Conversion cost $5,900

Cost added during August: Materials cost $151,000

Conversion cost $161,700 SAMPLE

The company uses the weighted-average method. Submit an Excel document with each tab labeled by item number that demonstrates the following:

1. Compute the equivalent units of production. 2. Compute the costs per equivalent unit for the month. 3. Determine the cost of ending work in process inventory and of the units transferred out to the next

department. 4. Prepare a cost reconciliation schedule for the month. What does the cost reconciliation schedule tell us

about the company’s costs? Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 3 Critical Thinking grading rubric. Option #2: Production Cost Accounting Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August:

Production data:


Pounds started into production during August 85,000

Pounds completed and transferred out ?


Cost data:

Work in process inventory, August 1: Materials cost $900


Cost added during August: Materials cost $151,000


The company uses the weighted-average method. Since FDA regulations are changing, management is considering converting to a job costing system of accounting in order that costs may be traced by batch rather than process. Management is concerned about the advantages and disadvantages of doing so.

1. Compute the equivalent units of production. 2. Compute the costs per equivalent unit for the month. 3. Discuss with management the advantages and disadvantages of implementing a job costing system

versus a process costing system. SAMPLE

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 3 Critical Thinking grading rubric.

Portfolio Milestone (10 Points)

Review the requirements for the Portfolio Project. You will be required to select a product and demonstrate your knowledge of cost analysis for that product. For this week’s milestone, please submit a Word document with your selected product and a few sentences on why you chose that product to your instructor. Include a title page and a reference page. Your assignment should follow the CSU-Global Guide to Writing and APA Requirements.

Module 4

Readings

• Chapter 5 in Managerial Accounting • Gallo, A. (2015, Jun 22). A refresher on breakeven quantity. Retrieved from:

https://hbr.org/2015/06/an-hbr-refresher-on-breakeven-quantity • Schultz, B. (2016, June). Do you know your breakeven point? Professional Builder. Retrieved from

https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1840127365?accountid=38569




Critical Thinking: Cost of Operation Exercise | CVP Relationships (60 points)

Option #1: Cost of Operation Exercise Toy Box Inc. is contemplating expanding sales of their children’s toys. They have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They need to order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They can resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box Inc. will need to hire an additional part-time cashier at $600 a month which will be classified as a fixed-cost attributable to the X toy. Also, they have offered a $1 sales commission per toy to their floor sales representative. They will also include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Required:

1. To make the project worthwhile, Toy Box Inc. would need to achieve a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely in a table inserted into your document.

2. Assume that the venture is undertaken and an order is placed for 100 X toys. What would be Toy Box’s break-even point in units and in sales dollars? Show computations completely in an inserted table, and explain the reasoning behind your answer. You can ignore the fixed cost of $600 for this part.

3. Assuming it would not affect sales, how would your answer to #2 change if the company did not offer the $2 trading cards as part of the deal?

Be sure to review the Module 4 Critical Thinking grading rubric. SAMPLE

Your response paper should meet the following requirements: • At least 2-3 pages in length • Format should be a PowerPoint document, showing all calculations in a table inserted in the document • Formatted according to the CSU-Global Guide to Writing and APA Requirements

Option #2: CVP Relationships Lindsey Rhodes is ready to complete a cost volume profit analysis 2016 for the Sampson Lighting manufacturing plant to determine if the breakeven point is achieved given the expected decline in volume. Specific costs for production of 500,000 units include the following:

Sampson Lighting Variable Costs Total Fixed Costs Total

Raw materials $400,000 Direct manufacturing labor $200,000 Indirect manufacturing labor $105,000 Factory Insurance & Utilities $63,000 Depreciation—Machinery and factory $38,500 Repairs and maintenance—factory $28,000 Selling, marketing, and distribution expenses $40,000 $80,000 General and administrative expenses $120,000

There are no beginning or ending inventories. The total sales for 500,000 units produced are $2,000,000. Answer the following questions given the fact pattern above, showing all calculations in tables inserted into a PowerPoint document.

1. What is the contribution margin per unit for each lighting fixture produced given the fact pattern above? 2. What is the Sampson Lighting’s US division breakeven point in units and dollars given the fact pattern

above? 3. What is the Sampson Lighting’s US division margin of safety and degree of operating leverage given the

fact pattern above? 4. Write a brief explanation (approximately two paragraphs) that Rhodes might deliver to management to

inform of the analytical outcome given the projected revenue and cost. Does the company have to implement a cost-reduction strategy in order to break even?

Your response paper should meet the following requirements:

• At least 2-3 pages in length • Format should be a PowerPoint document, showing all calculations in a table inserted in the document • Formatted according to the CSU-Global Guide to Writing and APA Requirements

Be sure to review the Module 4 Critical Thinking grading rubric.


For this week’s milestone, please submit a Word document with a process flow diagram for your manufacturing process. Requirement 1 is complete; you should be able to complete through requirement 4 by this point; another submission is required in Module 6. Your submission should include a title page and reference page. Your assignment should follow the CSU-Global Guide to Writing and APA Requirements. SAMPLE

Module 5

Readings

• Chapter 6 in Managerial Accounting • Hasan, S. (2016). Variable costing and its applications in manufacturing company. Journal of Information,

Business and Management, 8(2), 145-157. Retrieved from: https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1778467564?accountid=38569

• Tabitha, N., & Ogungbade, O. (2016). Cost accounting techniques adopted by manufacturing and service industry within the last decade. International Journal of Advances in Management and Economics, 5(1), 48-61. Retrieved from: http://www.managementjournal.info/download1.php?f=0605012016IJAMEE





Critical Thinking: Cost of Production | Behavioral Considerations under Absorption versus Variable Costing (60 points)

Option #1: Cost of Production Paint More, LLC has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below: Manufacturing costs: Variable costs per unit: Direct materials $12 Variable manufacturing overhead $1 Fixed manufacturing overhead costs (total) $100,000

Selling and administrative costs:

Variable 7% of sales Fixed (total) $31,000 Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded: Units produced 5,000 Units sold 4,000 Submit an Excel document with each tab labeled by item number that demonstrates the following:

1. Compute the unit product cost under: a. Absorption costing b. Variable costing

2. Prepare an absorption costing income statement for September 3. Prepare a contribution format income statement for September using variable costing SAMPLE

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 5 Critical Thinking grading rubric. Option #2: Behavioral Considerations under Absorption versus Variable Costing Classic Container Corp notes the following results for 2016 for variable versus absorption costing. The company’s base volume is 4,000,000.

Classic Container Corp

Budgeted Income Statement Variable Costing

units For the year 2016

3,800,000

Revenues $ 4,750,000 Variable Costs:

Material $ 950,000 Labor $ 950,000

Variable Overhead $ 570,000 Total Variable Costs $2,470,000 Contribution Margin $2,280,000 Fixed manufacturing Costs $2,000,000 Fixed non-manufacturing Costs $100,000

Operating Income $ 180,000

Absorption Costing

units

3,800,000 Revenues $4,750,000 Cost of Goods Sold:

Material $950,000 Labor $950,000

Variable Overhead $570,000 Fixed Overhead $1,900,000

Production Volume Variance $200,000

Total Manufacturing Costs $4,570,000 Gross Margin $180,000 Fixed non-manufacturing Costs $100,000 Operating Income $80,000 SAMPLE

The company presently uses absorption costing to provide additional compensation and incentivize managers to achieve their production goals. The compensation formula is 10% of operating income. Calculate the amount of the difference of additional compensation between the two income statement methods. If the decline in volume continues and Classic makes 3.6 million units in 2017, should the company switch to variable costing as the basis of compensation? Why or why not? What might be other implications of switching costing methodologies? Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 5 Critical Thinking grading rubric. Your paper should meet the following requirements:

• 2-3 pages in length, in Excel format including question responses formatted in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 5 Critical Thinking grading rubric.

Module 6

Readings

• Chapters 8 & 9 in Managerial Accounting • McNally, J. S. (2017). Zero-based budgeting: Building for success again, and again. Pennsylvania CPA

Journal, 87(4), 30-33. Retrieved from https://search-proquest-com.csuglobal.idm.oclc.org/docview/1848851194?accountid=38569

• Murphy, M. L., C.P.A. (2017). Using surplus budgeting to advance and sustain your mission. Journal of Accountancy, 223(2), 40-43. Retrieved from https://search-proquest-com.csuglobal.idm.oclc.org/docview/1864054753?accountid=38569




Critical Thinking: Cost of Production | Calculating Flexible Budget Variances (70 points)

Option #1: Cost of Production Hilliard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

a. As of December 31, the end of the prior quarter, the company’s general ledger showed the following

account balances: 1. Cash $48,000 (debit) 2. Accounts receivable $224,000 (debit) 3. Inventory $60,000 (debit) 4. Buildings and equipment, net $370,000 (debit) 5. Accounts payable $93,000 (credit) 6. Capital stock $500,000 (credit) 7. Retained earnings $109,000 (credit)

b. Actual sales for December and budgeted sales for the next four months are as follows: SAMPLE

• December $280,000 • January $400,000 • February $600,000 • March $300,000 • April $200,000.

c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following

sale. The accounts receivable at December 31 are a result of December credit sales. d. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) e. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month; advertising, $70,000 per

month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 per quarter.

f. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold. g. One half of the month’s inventory purchases is paid for in the month of purchase; the other half is paid in

the following month. h. During February, the company will purchase a new copy machine for $1,700 cash. During March, other

equipment will be purchased for cash at a cost of $84,500. i. During January, the company will declare and pay $45,000 in cash dividends. j. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a

local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required tasks for Option #1: Using the data above, finish populating the following statements and schedules for the first quarter. Submit your responses in an Excel spreadsheet:

1. Schedule of expected cash collections

Schedule of Expected Cash Collections

January February March Quarter

Cash sales $80,000

Credit sales $224,000

Total collections $304,000

2. Merchandise purchases budget

Merchandise Purchases Budget


Budgeted cost of goods sold $240,000* $360,000

Add desired ending inventory $90,000**

Total needs $330,000 SAMPLE

Less beginning inventory $60,000

Required purchases $270,000

*$400,000 sales x 60% cost ratio = $240,000 ** $360,000 x 25% = $90,000

3. Schedule of expected cash disbursements-merchandise purchases

Schedule of Expected Cash Disbursements-Merchandise Purchases


December purchases $93,000 $93,000

January purchases $135,000 $135,000 $270,000

February purchases

March purchases

Total disbursements $228,000

4. Schedule of expected cash disbursements-selling and administrative expenses

Schedule of Expected Cash Disbursements-Selling and Administrative Expenses


Salaries and wages $27,000

Advertising $70,000

Shipping $20,000

Other expenses $12,000

Total disbursements $129,000

5. Cash budget:

Cash Budget


Cash balance, beginning $48,000

Add cash collections $304,000

Total cash available $352,000

Less cash disbursements

For inventory $228,000

For selling and admin expenses $129,000 SAMPLE

For purchase of equipment ------

For cash dividends $45,000

Total cash disbursements $402,000

Excess (deficiency) of cash ($50,000)

Financing needed

Cash balance, ending

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 6 Critical Thinking grading rubric. Option #2: Calculating Flexible Budget Variances Stellar Packaging Products is experiencing an increase in demand for the month of November as a result of Estrella Coffee’s comeback in its retail outlets. The following fact pattern forms the basis for the static budget:

Stellar Packaging Products Variable Costs

Total Fixed Costs

Total Raw materials $ 100,000 Direct manufacturing labor $ 125,000 Indirect manufacturing labor $ 105,000 Factory insurance & utilities $ 63,000 Depreciation – Pressroom $ 38,500 Repairs and maintenance – factory $ 28,000 Selling, marketing & distribution expenses $ 40,000 $ 80,000 General and administrative expenses $ 120,000 Variable cost and volume data Plastic Raw materials = 0.10 lbs. x $2.00/lb. $ 0.20 Direct labor = 0.025 hr. x $10/hr. $ 0.25 Volume in units 500,000

Sales per unit are $3.00. Required:

1. In good form, prepare the static budget operating income in contribution format. 2. Suppose actual sales demand increases to 700,000 units for November; assume the units are within the

relevant range. Prepare the flexible budget for November in contribution format. 3. Compute and reconcile the sales volume variance for November. Indicate whether the variance is

favorable or unfavorable. SAMPLE

4. Explain why there was a variance in the sales volume for November, and identify the elements which give rise to the difference between the flexible and static budgets. Explain also the reason for completing a flexible budget for the period.

Your paper should meet the following requirements:

• 2-3 pages in total length. • Formatted according to the CSU-Global Guide to Writing and APA Requirements.

Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document and must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 6 Critical Thinking grading rubric.


Option #1 Review the requirements for the Portfolio Project. For your selected product, begin your estimate of cost for that item with requirements 2 and 3. Submit the following information to your instructor in Excel.

1. Prepare the following budgets for 1 quarter broken down monthly regarding your chosen item: • estimated sales budget • estimated direct materials budget • estimated direct labors budget • estimated manufacturing overhead budget • estimated selling and administrative expenses • estimated income statement

2. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. Option #2 Review the requirements for the Portfolio Project. For your selected product, begin your estimate of cost for that item with requirements 2 and 3. Submit the following information to your instructor in Excel.

1. Forecast the variable cost per unit. 2. Forecast manufacturing costs and selling and administrative expenses as either variable or fixed.

Module 7

Readings

• Chapters 10 & 11 in Managerial Accounting • Bargerstock, A., C.P.A., & Shi, Y. (2016). Leaning away from standard costing. Strategic Finance, 97(12),

38-45. Retrieved from https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1795939317?accountid=38569

• The Balanced Scorecard. (2016). Journal of Accountancy, 221(5), 39-41. Retrieved from https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1787795848?accountid=38569




Mastery Exercise (10 points) SAMPLE

Module 8

Readings

• Chapters 12 & 13 in Managerial Accounting • Damico, R. (2016). Decision time: Make or buy. Crain's Detroit Business, 32(32), 27. Retrieved from

https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1810626610?accountid=38569

• Nisha, N. (2016). Relevant costing: Can the method coincide with different industries? Journal of Commerce and Accounting Research, 5(2) Retrieved from https://csuglobal.idm.oclc.org/login?url=https://search-proquest-com.csuglobal.idm.oclc.org/docview/1839189173?accountid=38569




Portfolio Project (300 points)

Portfolio Assignment Option #1 You have been selected to be a participant on the hit television show, Shark Tank, to present before the panel of investors an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps to help prepare yourself for the show:

1. Choose a product to manufacture and describe the manufacturing process. 2. Prepare the following budgets for one quarter broken down monthly regarding your chosen item:

• estimated sales budget • estimated direct materials budget • estimated direct labor budget • estimated manufacturing overhead budget • estimated selling and administrative expenses • estimated income statement

3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own

categories. 5. Determine the break-even point in units and dollars. Also, determine the number of units and dollars

that need to be sold to make a target profit of $5,000 a month. 6. Identify what types of trends you should be aware of in the industry and who the primary competitors

are. 7. Answer the following question: If you had to improve the bottom line, what would you do, and what

concerns would you have going forward? 8. Choose a piece of equipment that you might consider purchasing to increase production of your item

and address the following questions: What types of capital budgeting factors would you look at when deciding whether to do this? What would be the relevant costs that you would consider in this decision?

SAMPLE

Your final project should include a 5-slide PowerPoint summary presentation of your project. Detailed information supporting items #1-8 should be in Word and Excel that addresses each of these different areas as detailed herein. Steps #1, 6, 7 and 8 will be in paragraph form in Word and Steps #2, 3, 4 and 5 will involve numerical calculations that should be put into Excel and included as part of the paper. Provide your calculations in an Excel spreadsheet, clearly organized in an easy-to-read format. The written portion of your assignment should be submitted as a Word document. Your detailed submission should be at least 3-6 pages (Word documents should be double spaced) and follow the CSU-Global Guide to Writing and APA Requirements. You should also cite at minimum 5-6 references including the course textbook. Include a properly formatted reference page. Be sure to review the Portfolio Project grading rubric. Portfolio Assignment Option #2 You have been selected to be a participant on the hit television show, Shark Tank, to present before the panel of investors an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps to help prepare yourself for the show:

1. Choose a product to manufacture and describe the manufacturing process. 2. Forecast the variable cost per unit. 3. Forecast manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own

categories. 5. Determine the break-even point in units and dollars. Also, determine the number of units and dollars

that need to be sold to make a target profit of $5,000 a month. 6. Identify what types of trends you should be aware of in the industry and who the primary competitors

are. 7. Develop a balanced scorecard for a company that will sell your product, indicating:

• two financial • two internal business processes • two customers • two learning and growth key productive indicators that will serve as the basis for your product

strategy. Based on your costing scenario and information gathered from items #1-6, develop viable targets for these key productive indicators. Name an initiative the company can take to ensure the target is met. Your final project should include a 5-slide PowerPoint summary presentation that addresses each of these different areas. Detailed information supporting items #1-8 should be in Word or Excel as detailed herein. Steps #1-5 will involve numerical calculations in Excel and #6-7 should be put into Word in proper format and included as part of the presentation. Your detailed submission should be at least 3-6 pages (Word documents should be double spaced) and follow the CSU-Global Guide to Writing and APA Requirements, including a properly formatted references page. You should also cite at minimum 5-6 references including the course textbook. Be sure to review the Portfolio Project grading rubric. SAMPLE

COURSE POLICIES

Course Grading 20% Discussion Participation 0% Opening Exercises 0% Live Classroom 8% Mastery Exercises 37% Critical Thinking Assignments 35% Final Portfolio Project

Grading Scale A 95.0 – 100

A- 90.0 – 94.9

B+ 86.7 – 89.9

B 83.3 – 86.6

B- 80.0 – 83.2

C+ 75.0 – 79.9

C 70.0 – 74.9

D 60.0 – 69.9

F 59.9 or below

SAMPLE

IN-CLASSROOM POLICIES

For information on late work and incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies. Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources. Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should also be provided within most assignment descriptions in your course. Disability Services Statement CSU–Global is committed to providing reasonable accommodations for all persons with disabilities. Any student with a documented disability requesting academic accommodations should contact the Disability Resource Coordinator at 720-279-0650 and/or email [email protected] for additional information to coordinate reasonable accommodations for students with documented disabilities. Netiquette Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words? Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by email, or on discussion boards and other postings within or connected to the online classroom. If you have concerns about something that has been said, please let your instructor know.

SAMPLE

http://portal.csuglobal.edu/document/ACPOLICIES

http://portal.csuglobal.edu/document/ACPOLICIES

mailto:[email protected]

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