Assignment 3 Excel Problems At The End Of Each Module 558620

Assignment 3 Excel Problemsat The End Of Each Module You Will Apply

At the end of each module, you will apply the module’s concepts by completing comprehensive assignments from the textbook. Complete problems P16A-17B (p. 898), P16A-19B (p. 899), P18-24A (p. 979), P18-26A (p. 980) in your textbook. Present your analysis of the assigned problems in Excel format. Enter non-numerical responses in the same worksheet using textboxes.

Paper For Above instruction

This paper addresses the application of Excel to solve a series of comprehensive problems derived from different modules in the textbook, focusing on cost accounting, process costing, and managerial decision-making. The assignments involve creating detailed timelines, calculating equivalent units, assigning costs, preparing T-accounts, journal entries, and performing various CVP analyses.

Problem P16A-17B: Assembly Department Workflow and Cost Allocation

The first problem requires the development of a timeline for the assembly department to visualize production flow and timing. Precise scheduling enables better resource management and bottleneck identification. The calculation of equivalent units is essential for accurately assigning costs in a process costing environment, considering partially completed units. Proper allocation of total costs involves accumulation of direct materials, labor, and overhead expenses, distributed proportionately via equivalent units. The T-account for work-in-process (WIP) inventory aids in tracking costs, beginning balances, additions, and transfers out, leading to an accurate ending balance. Executing these tasks in Excel involves setting up spreadsheets with formulas for calculations, timelines, and cost flows, ensuring clarity and traceability.

Problem P16A-19B: Preparation Department Cost Tracking

The second problem emphasizes designing a timeline for the preparation department, similar to the first but specific to its processes. Calculating equivalent units here ensures precise cost assignment for partially completed sheets. The total costs are computed by summing direct and overhead costs allocated during the period. The journal entry to record sheet costs involves debiting work-in-process inventory and crediting various accounts related to materials, labor, and overhead. Posting journal entries to the WIP inventory and determining the ending balances in Excel facilitate monitoring production costs over time, supporting managerial decision-making and cost control efforts.

Problem P18-24A: Revenue and Break-Even Analysis for Shows

This problem involves calculating revenue and variable costs for each show to evaluate profitability. Determining the number of shows BP must perform to break even requires analyzing fixed and variable costs. The additional calculation of the number of shows needed to generate a profit of $3,825,000 provides insight into operational goals. Preparing a contribution margin income statement summarizes revenues, variable costs, fixed costs, and net income, illustrating the company's financial position and supporting strategic planning.

Problem P18-26A: Big Time’s Break-Even and CVP Graphs

Here, the focus shifts to calculating Big Time's break-even revenue in dollars, which involves dividing fixed costs by contribution margin ratio, illustrating revenue needed to cover all expenses. Computing the dollar revenues needed to earn an operating income (OI) of $11 million extends this analysis, helping assess financial targets. Graphing CVP relationships visually demonstrates the impact of sales volume, costs, and profits, facilitating better understanding of break-even and profit scenarios. Adjusting the average revenue per trade to $900 and recalculating the breakeven point shows how changes in revenue rates influence profitability. These qualitative and quantitative analyses are best performed in Excel, with charts and formulas providing visual and numerical insights.

Conclusion

Applying Excel to these comprehensive problems fosters a deeper understanding of cost management, process analysis, and financial planning. The integration of timelines, cost calculations, journal entries, CVP analysis, and visualization tools equips managerial accountants with practical skills necessary for decision-making and operational efficiency. Each problem underscores the importance of conditional calculations, formula accuracy, and clear presentation within Excel spreadsheets, which serve as vital tools for effective financial analysis and reporting in a dynamic business environment.

References

  • Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
  • Horngren, C. T., Datar, S. M., & Rajan, M. V. (2019). Cost Accounting: A Managerial Emphasis (16th ed.). Pearson.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial & Managerial Accounting (13th ed.). Wiley.
  • Hilton, R. W., & Platt, D. E. (2019). Managerial Accounting: Creating Value in a Dynamic Business Environment (7th ed.). McGraw-Hill Education.
  • Gordon, R., & Natarajan, S. (2017). Financial Accounting: An Introduction to Concepts, Methods and Uses. Wiley.
  • Ching, N., & Hansen, D. R. (2019). Excel Data Analysis for Dummies. Wiley.
  • Williams, J. (2016). Financial Analysis with Microsoft Excel. Wiley.
  • Higgins, R. C. (2012). Analysis for Financial Management. McGraw-Hill Education.
  • Pratt, M. J. (2019). The Essentials of Cost Accounting. Pearson.

Related Assignments