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ACCT 346 Course Project on Bravo Baking Company (Weeks 1, 2, 3, 5, 6, and 7)

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Question;Course Project;Guidelines;This course has a six-part project with deliverables due in 6 of the 8 weeks.;The Course Project takes a new company through hypothetical scenarios;to reinforce the TCOs. By using a single entity in a variety of;business situations, you will see the practical application of a number;of managerial accounting concepts taught in this course.;You will have access to an interactive Excel template in Doc Sharing to;complete your work in proper format. Each week's Assignment page will;tell you which portion of the template you need to complete for that;week.;You will have Dropbox deliverables in Weeks 1, 2, 3, 5, 6, and 7. Point;values do vary, in that Week 1 is worth 10 points, Week 2 is worth 30;points, and the remaining Weeks (3, 5, 6, and 7) are 40 points apiece.;See the Syllabus section "Due Dates for Assignments & Exams" for;due date information.;Course projectBravo Baking Company began operations in May of 2010 with the production and sales of specialty breads.The company has experienced a good market demand for its high protein, low carbohydrate product called "Hi-Lo" Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's customers, the local retailers, have been asking for more specialty breads from the company. The decision to expand will be made 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 response.PointsPointsDueAvailable EarnedTab1) Product vs. Period CostsWeek 11010.00Tab 2) Cost of Goods Manufactured ScheduleWeek 23021.43Tab 3) Break Even AnalysisWeek 34035.00Tab 4) Incremental AnalysisWeek 54040.00Tab 5) Capital BudgetingWeek 6400.00Tab 6) Variance AnalysisWeek 7400.00200106.43 TotalACCT 346Student NameJessica GuajardoFor Tables A: From the list below, identify if the cost item is a"Product Cost" or "Period Cost" by typing "Product" or "Period" inthe appropriate box.Table AFlour used in baking breadFactory Supervisor SalariesBakers wagesRent for Executive OfficesSales CommissionsUtilities used in the factoryAdvertising costsDelivery truck costsPaper wrappers for breadDepreciation on bake ovensEggs, salt, water used for bakingInterest on bank loanFactory InsuranceEnter either "Product" or "Period"productproductproductperiodperiodproductperiodperiodproductproductproductperiodproductFor Table B: From the list below, identify if the cost item is a "DirectCost" or "Indirect Cost" by typing "Direct" or "Indirect" in the10 points appropriate box.Table B### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct### Correct###Flour used in baking breadFactory Supervisor SalariesBakers wagesFactory InsuranceRent for FactoryUtilities used in the factoryCleaning Bake OvensInsurance on FactoryPaper wrappers for breadDepreciation on bake ovensEggs used for bakingSmall amounts of salt usedFactory MaintenanceEnter either "Direct" or "Indirect"directCorrectindirectCorrectdirectCorrectindirectCorrectindirectCorrectindirectCorrectindirectCorrectindirectCorrectdirectCorrectindirectCorrectdirectCorrectindirectCorrectindirectCorrectPoints10.00ACCT 346Student NameJessica GuajardoUse the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values inthe Green shaded cells.30 pointsTable CMaterials used in baking breadBakers wagesRent for Executive OfficesSales CommissionsUtilities used in the factoryAdvertising costsDelivery truck costsDepreciation on bake ovensInterest on bank loanBeginning Inventory MaterialsBeginning Work in ProcessEnding Inventory MaterialsInventory PurchasesEnding Work in ProcessOther Overhead costsBeginning Finished Goods InventoryEnding Finished Goods InventoryRent for Factory32,000 Correct$32,00036,000100005000120002500050025010,000800040002600025001200750060007500CorrectCost of Goods Manufactured ScheduleBeginning Work In ProcessMaterialsBeginning Inventory Materials$10,000Plus: Purchases$26,000Materials Available$36,000Less: Ending Inventory Materials$4,000Materials UsedDirect LaborOverheadFactory Rent$7,500Depreciation on bake ovens$500Utilities used in Factory$5,000Other Overhead costs$1,200Total OverheadTotal Manufacturing CostsTotal Work in ProcessLess: Ending Work in ProcessCost of Goods Manufactured$8,000 CorrectCorrect###Correct###Correct###Correct###Correct###Correct###$32,000$32,000$14,200###Correct###Correct###Correct###Correct###Correct###Correct###Correct######Correct######$8,000$78,200$2,500Complete only the Green cells. Values in Red are from the schedule above.Cost of Goods Sold ScheduleBeginning Finished Goods InventoryBeginning Work In Process$8,000MaterialsBeginning Inventory Materials$10,000Plus: Purchases$26,000Materials Available$36,000Less: Ending Inventory Materials$4,000Materials Used$32,000Direct Labor$32,000OverheadFactory Rent$7,500Depreciation on bake ovens$500Utilities used in Factory$5,000Other Overhead costs$1,200Total Overhead$14,200Total Manufacturing Costs$78,200Total Work in Process$0Less: Ending Work in Process$2,500Cost of Goods Manufactured-$2,500Goods Available for SaleLess: Ending Finished Goods InventoryCost of Goods Sold SchedulePoints###CorrectCorrectCorrectCorrectCorrectCorrectCorrectCorrectCorrectCorrectCorrectCorrect#########21.42857###ACCT 346Student NameJessica GuajardoBravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO 4)Units produced14,000Part I Enter your solution in the green cells for each of the following:Table AMaterials used in baking breadSales CommissionsBakers wagesRent for Executive OfficesFactory Supervisor SalariesUtilities used in the factoryAdvertising costsDelivery truck depreciationDepreciation on bake ovensInterest on bank loanVariable Fixed2.290.122.293,00035000.5010004000.07500Total Costs$5.27Price Charged per unitUsing the costs from Table A computeA) Breakeven units (rounded to 2 decimal places)B) Break-even sales dollarsC) Contribution MarginD) Contribution Margin Ratio (enter as % for example 51% or decimal.51)Part II Complete the following requirementsA) If Bravo requires a profit of $5,000 how many units must it sell?B) What is the total revenue from A above?C) If Bravo actually sells 8,000 units (Hint: Use Break Even $ from B Above)1) What is the margin of safety in Dollars?2) What is the margin of safety percentage?40 Points3360.00 Correct$26,107.20 Correct$2.50 Correct32% Correct############5360.00 Correct ###$41,647.20 Correct ###$36,052.80 Correct ######$8,400.00$7.77Total CorrectPoints35###ACCT 346Student NameJessica GuajardoBravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below.ProductRevenuesVariable product costsVariable Selling & Administrative costsContribution MarginFixed Product CostsFixed Selling and Administrative CostsAllocated Common CostsNet IncomeHi-LoWhole Grain Fruit & Nuts Total$67,575$31,800$15,900 $115,275$27,030$12,720$6,360 $46,110$13,515$6,360$3,180 $23,055$27,030$12,720$6,360 $46,110$5,000$5,000$5,000 $15,000$5,700$2,850$2,850 $11,400$5,000$2,500$2,500 $10,000$11,330$2,370($3,990)$9,710Required: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 would you advise Bravo to do?Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.ProductHi-LoWhole Grain Fruit & Nuts TotalRevenues$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$5,000$5,000$2,500 $12,500 Correct ###Fixed Selling and Administrative Costs$5,700$2,850$1,425$9,975 Correct ###Allocated Common Costs$5,000$2,500$2,500 $10,000 Correct ###Net Income$11,330$2,370-$6,425$7,275 Correct ###PointsBased on your analysis, what recommendation would you make about Fruit & Nuts? Explain.It appears it would no be wise to eliminate the division as they show a loss but front the fixed cost.###40(TCO 7)40 PointsACCT 346Student NameBravo 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 more bread each year. From these additional salesthe annual after-tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year.However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it isexpected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost.Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?Use the format below to complete the NPV computations:Note: Use PV Tables found in the PV tabs in the workbook. Be sure to enter 4 decimal places. Also, be sure to show costs as negative values.CashFlowPV FactorsPV AmountsCost of new refrigeration unit###After tax cash flow###Annual electricity savings###Additional annual maintenance costs###Amount collected from disposal of unit###Net present value###PointsBased on your analysis, what is your recommendation regarding the new freezer? Explain0.00###TCO 940 PointsACCT 346Student NameTCO 1040 PointsBravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.Standard Cost per unitCost /UnitAmount/UnitStandard CostMaterial Cost (Ingredients) (.5 lbs)2.29.5 lbs$4.58Direct Labor(.25 hrs * $9/hr)2.25.25 hrs$9.00Overhead0.57Total5.11During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravopurchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998Required: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 ===(-

 

Paper#40598 | Written in 18-Jul-2015

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