Due In 24 Hours: Milestone 4 Assignment Must Be Completed Fi

Due In 24 Hoursmileston 4 Assignment Must Be Completed First Then T

It has now been one month since you launched your business. You are meeting with a few investors soon to share your vision for the company and to ask for more funding. You will be sharing your company’s financial health at this meeting.

To do that, you need to determine and analyze your company’s performance over the last month using the data provided. Use the information in the Milestone Three Actual Costs and Revenue Data Appendix Word Document to evaluate your company’s performance, and complete the remaining tabs in the Project Workbook Spreadsheet that you used for the Milestone One and Two assignments.

Specifically, you must address the following rubric criteria:

  • Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the “COGS” tab of the workbook. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Income Statement: Use the given revenue data to prepare the “Income Statement” tab table and calculate the net income. Show your work with calculations either on the side or through formulas within the table.
  • Variance Analysis: Prepare the data in the “Variances” tab to determine whether the variances are favorable or unfavorable. Show your work using calculations or formulas within the table. Complete the data table for variances by entering the budgeted (standard) and actual labor and material values, based on estimates from your Milestone Two assignment. Determine variances for direct labor and direct materials. Evaluate the significance of these variances and mark them as favorable or unfavorable.

Guidelines for Submission: Submit the Project Workbook with all tabs completed in Microsoft Excel.

Paper For Above instruction

The purpose of this assignment is to evaluate the financial performance of a newly launched business after its first month of operation. This analysis is critical for attracting further investment by providing insights into the company's cost structures, revenue streams, and variances from expected financial outcomes. The task involves developing detailed financial statements, including the cost of goods sold (COGS), income statement, and variance analysis, in Excel. This comprehensive financial review not only demonstrates your understanding of managerial accounting principles but also enhances your ability to interpret financial data for strategic decision-making.

In preparing the statement of cost of goods sold (COGS), I will identify and calculate the direct costs attributed to the production of goods sold during the month. These costs include raw materials, direct labor, and manufacturing overhead. Using the data from the provided appendix, I will itemize the costs, apply appropriate formulas, and compile a clear COGS statement in the designated tab. For instance, the direct materials cost will be computed by summing the purchases minus closing inventory, while direct labor costs will be calculated based on hours worked multiplied by hourly wages.

Next, I will develop the income statement by integrating revenue data with the COGS and other expenses. This process involves calculating gross profit by subtracting COGS from total revenue, then deducting operating expenses to arrive at net income. Accurate formulas will be used to ensure the calculations are dynamic and reflect any changes in revenue or costs. The income statement provides stakeholders a snapshot of profitability, showing whether the business has generated a profit or loss in its first month.

The variance analysis is an essential component that compares actual financial outcomes with budgeted or standard costs established earlier. This step involves entering the standard and actual data for direct materials and direct labor in the Variances tab. By calculating the differences, I will identify variances and classify them as favorable (costs less than expected) or unfavorable (costs more than expected). For example, if actual labor costs exceed standards, this will be marked as an unfavorable variance, prompting further investigation into labor efficiency or wage rates. This analysis helps in understanding operational efficiencies and areas needing correction.

Overall, this assignment requires meticulous data handling and formula application to produce accurate, insightful financial reports. It combines computational analysis with interpretative skills, aiding in strategic decision-making and preparing for investor meetings. Completion of this task will demonstrate competency in financial statement preparation and variance analysis, which are fundamental skills in managerial accounting and business management.

References

  • Brigham, E. F., & Houston, J. F. (2020). Fundamentals of Financial Management (15th ed.). Cengage Learning.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2019). Introduction to Management Accounting (16th ed.). Pearson.
  • Shim, J. K., & Siegel, J. G. (2019). Financial Management. Barron's Educational Series.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial and Managerial Accounting (11th ed.). Wiley.
  • Kaplan, R. S., & Anderson, S. R. (2007). Time-Driven Activity-Based Costing. Harvard Business Review.
  • Drury, C. (2018). Management & Cost Accounting (10th ed.). Cengage Learning.
  • Anthony, R. N., & Govindarajan, V. (2019). Management Control Systems. McGraw-Hill Education.
  • Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis. Pearson.
  • Fisher, T., & Romig, R. (2017). The Budgeting Process: A Guide to Cost Control. Journal of Business & Economics.

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