M3A2 LASA

Assignment 2: LASA 1: Executive Report

You have just been hired by Gracie Faye International (GFI) as a cost accountant. The company was named for the internationally popular Toka player, Gracie Faye. The company was started by John Smith who, in his basement, crafted a toka ball and beautifully strong toka stick for his daughter, Tresha, who played on a local team. 
Tresha’s team saw the benefit of Tresha’s well-crafted equipment, and soon after, John was asked to equip the whole team. After the team won the championship, he was taking orders for the whole league and soon the whole toka world was knocking on John Smith’s door. 
From simple beginnings, GFI has branched out to other sports, taking their brand of solid construction to new heights. Their ping pong table is known as the elephant’s dancing table, since ping-pong star Kevin “The Elephant” Pelinsky leapt onto a GFI table to dance across the net after he won a championship. 
Founder Smith was quoted soon after saying, “all of our products have elephant dancing quality.” Their bleachers sales skyrocketed after the collapse of a competitor in the early ‘90s, and a Department of Parks and Recreation remodeled all their baseball fields with GFI electronic scoreboards and their batting cages with GFI automatic pitching machines.
The CFO (your new department head) has asked you to prepare a report to submit to the top management of the company. It would seem that the CFO did not do a very good job justifying your position and what you can do for the company. 
The CFO would like for you to explain cost accounting, as well as present information to the management team on product costs for the production of toka balls, specific job order costs for special order products and provide costing information for two models of pitching machines currently offered. 
You will present all of this information in a management report divided up into four separate sections as described below.

PART 1: In this section of the report, your job is to explain cost accounting and what skills you can bring to the company. The CFO feels you should include an overview of what cost management is and some of its applications. Be sure to discuss the opportunities available in the cost accounting and how it relates to corporate strategy. This section of your report should be approximately two pages in length.

PART 2: In this section of the report, you are asked to classify the product costs for the production of toka balls. Classify each cost as:

• fixed or variable
• direct or indirect

Complete the table and include it in your report. The management team will require justification for each cost (i.e. why you classified the costs as you did).
        Product Cost                     Variable    Fixed  Direct Indirect
        Electricity  
        Real Estate Taxes  
       Wood for toka sticks  
        Leather to tie wood together  
        Manufacturing Labor  
        Water  
        Lubricants for Machinery  
        Equipment depreciation  
 
Use Microsoft Excel to calculate your answers for Parts 3 and 4 and cut and paste the calculations from Excel into your report to show your work.

PART 3: The third section of the report should contain your computations for the month of July based on the information given below. The following information is available for a GFI division that produces electronic scoreboards. These are special order products that use a job order cost accounting system. The management team wants to see your calculations in your responses.
                                                                       June 30           July 31
Inventories  
Raw materials                                       62,000                  75,000
Goods in process                                       85,000                  95,000
Finished goods                                    103,000                  58,000
   
Activities and information for                                                   July  
 
Raw materials purchases by cash                         510,000
Factory payroll by cash                                                745,000
Factory overhead  
Indirect materials                                                           24,000
Indirect labor                                                                        132,000
Other overhead costs                                                220,000
Sales in cash                                                                    3,500,000
Predetermined overhead rate based on direct labor cost 52%

Compute the following amounts for the month of July.

1. Cost of direct materials used.

2. Cost of direct labor used.

3. Cost of goods manufactured.

4. Cost of goods sold. (Do not consider any underapplied or overapplied overhead.)

5. Gross profit.

6. Overapplied or underapplied overhead.

PART 4: In the last section of the report, the management team would like to know the profits they can expect from the two models of pitching machines they currently manufacture. The softball pitching machine and the hardball machine make up the entire product line. To help determine the profit of each individual product, the CFO wants overheads to be allocated back to the products. Total inspection costs are $40,000.

The estimated production budget is as follows.

Softball pitching machine

Units                                                                      20 units
Direct labor hours per unit                   200 hours per unit 
Number of inspections                                5 per unit 
 

Hardball pitching machine

Units                                                                     20 units
Direct labor hours per unit                  200 hours per unit 
Number of inspections                             15 per unit 

1. Under a costing system that uses direct labor hours as a driver for the allocation, how much of the inspection costs would be allocated to softball machine?

2. Repeat the same question for hardball machine.

3. Using ABC and the number of inspections as a driver for allocation, recalculate the allocation for the softball machine.

4. Repeat the activity mentioned in question 3 for hardball machine.

You know that your report will be shared with senior level managers and eventually to the board of directors. However, you are uncertain whether or not you will be allowed to present your work at a later time or in a different manner. 

Therefore it is important that your report is well written, professional, includes an introduction and a conclusion, and follows APA standards.

Use the following file naming convention: LastnameFirstInitial_M3_A2.doc

By the due date assigned, deliver your assignment to the Submissions Area.

Assignment 2 Grading Criteria
Maximum Points

Part 1: Explained cost accounting and the skills a cost accountant brings to a company. 28
Part 1: Provided an overview of cost management and some of its applications 24
Part 1:Discussed the opportunities in cost accounting and how it relates to corporate strategy 28
Part 2: Classified production costs as fixed/variable and direct/indirect 16
Part 3: Computed cost amounts, gross profit, and overhead. 20
Part 4: Explained the inspection costs of hardball and softball machines. 20
Part 4: Re-calculated the allocation for hardball and softball machines. 20

Written Components: 
Organization (12)
usage and mechanics (12)
APA elements (16) 
Style (4) 44
Total: 200

Order your essay today and save 20% with the discount code: ESSAYHELP

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more