Assignment 3 Excel Problems At The End Of Each Module 862934

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

Assignment 3: Excel Problems 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. By Wednesday, June 14, 2017, deliver your assignment to the M2: Assignment 3 Dropbox. Create the file with the following name: LastnameFirstInitial_M2A3.Excel.xls.

Paper For Above instruction

Introduction

The integration of spreadsheet skills into accounting and finance coursework has become essential, given the increasing reliance on Excel for data analysis, financial modeling, and decision-making. This assignment aims to reinforce core concepts from the textbook by applying them using Excel, fostering both technical proficiency and analytical thinking. By tackling specific problems related to process costing, job costing, and contribution margin analysis, students develop practical skills that are crucial for real-world financial analysis.

Problem 1: Process Costing and Departmental Analysis (Problems P16A-17B and P16A-19B)

The first set of problems focuses on process costing, specifically in assembly and preparation departments. The task involves drawing production timelines, calculating equivalent units of production, assigning total costs, and preparing T-accounts for work-in-progress (WIP) inventories. These exercises help students understand the flow of costs through production departments and the necessary journal entries to record costs correctly.

In the assembly department scenario, students are required to develop a timeline that illustrates production and work flow, enabling a visual understanding of the process. The calculation of equivalent units involves considering completed units and partially completed units in WIP, which is fundamental for accurate cost allocation. Assigning total costs to units using appropriate cost per equivalent unit allows for precise valuation of WIP and finished goods.

The preparation of T-accounts for WIP inventory consolidates these concepts, demonstrating the movement and accumulation of costs within the department. This exercise emphasizes the importance of detailed record-keeping in process costing systems.

Similarly, the problem related to the preparation department verifies students’ ability to allocate costs accurately, compute total costs, and record journal entries for the transfer of sheet costs. Posting these journal entries to WIP accounts and calculating ending balances reinforce understanding of inventory costing and journalization processes.

Problem 2: CVP Analysis and Break-Even Calculation (Problems P18-24A and P18-26A)

The subsequent set of problems centers on contribution margin analysis, break-even point (BEP), and target profit calculations using CVP techniques.

For the first problem, students calculate revenue and variable costs for each show, determining the company's contribution margin per unit and overall contribution margin. These calculations are critical for understanding how revenue and variable costs influence profitability at different production levels. Subsequently, students compute the number of shows BP must perform to break even and the number of shows required to earn a specific profit goal, illustrating the practical application of contribution margin analysis in planning.

The second CVP problem involves computing Big Time’s break-even revenue in dollars, which requires understanding fixed costs, contribution margin ratio, and sales volume. Students are also asked to determine dollar revenues needed to achieve an operating income (OI) of $11,200—a vital aspect of financial planning.

Graphing Big Time’s CVP relationships reinforces visual understanding of how changes in sales volume affect contribution margins, costs, and profits. The exercise of calculating the new break-even point if average revenues increase demonstrates sensitivity analysis, an important managerial skill for assessing the impact of revenue fluctuations on profitability.

Conclusion

These interconnected problems bridge theoretical accounting principles and practical application, vital for students aspiring to careers in finance and managerial accounting. By completing these Excel-based exercises, students develop a comprehensive understanding of process costing, journal entries, CVP analysis, and break-even calculations. Mastery of these concepts enhances their ability to analyze financial situations, make informed decisions, and communicate results effectively.

References

  • Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
  • Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2018). Introduction to Management Accounting (16th ed.). Pearson.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2021). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Financial & Managerial Accounting (11th ed.). Wiley.
  • Shim, J. K., & Siegel, J. G. (2017). Budgeting and Financial Management for Nurse Managers. Springer Publishing.
  • Cook, R. E. (2019). Cost Accounting: A Managerial Emphasis. Pearson.
  • Benston, G. J., & Hartgraves, A. L. (2018). Cost Accounting: Foundations and Evolutions. Routledge.
  • Anthony, R. N., Hawkins, D., & Merchant, K. A. (2019). Accounting: Texts and Cases. McGraw-Hill Education.
  • Henry, A. (2019). Managerial Accounting. Routledge.
  • Kaplan, R. S., & Atkinson, A. A. (2019). Advanced Management Accounting. Pearson.

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