Solution
Jyoti answered on
Oct 13 2021
Project 3 Introduction
Project 3 Please use this template provided to solve project 3 that contains 2 parts. Save your file using your first initial, last name, and project 3.
Name: TYPE in your name here Upload your solution to the project 3 link. Make sure you type your name in cell A2
You should always verify that your project file has been uploaded co
ectly. Remember it is your
responsibility to take the time to verify that your file has uploaded co
ectly. If there are problems, please contact me immediately.
You will be graded on the accuracy of your answer and the usage of Excel in part 1 and your research and analysis skills for Part 2.
The project solution is worth a total of 30 pts. Each part is worth 15 pts. each.
Remember to review the eLectures and guided examples in MBC. Also, there is support material on job costing in the Module 18 folder.
Project 3 Part 1: Product costing in a job cost environment
1. Analyze and develop job cost information.
2. Develop a Schedule of Cost of goods manufactured and an Income Statement.
3. Develop a chart.
Project 3 Part 2: Objectives of SEC Research Analysis
1. Classify companies into service, merchandising, or manufacturing industry using the 10-K in the SEC EDGAR system.
2. Analyze the annual financial statements to differentiate among the three different industries.
3. Identify differences in inventory accounts among industries.
4. Explain how inventory impacts the performance of a company through revenue generation.
Grading Ru
ic for Project 3-Part 1: Worth 15 pts. Points
Part 1:
#1 2
#2 2
#3 2
#4 1
#5 2
#6 2
#7 2
#8 2
Total Points Part 1 15
Grading Ru
ic for Project 3-Part 2: Worth 15 pts. Points
Part 2: Make sure you are meeting all the requirements as set out on the Part 2 Instructions worksheet.
You will earn zero credit for Part 2, if you did not use the most cu
ent 10-K from the SEC EDGAR system.
#1 -1/2 pt. for each URL, CIK, and period of report date. 4.5
#2-1 pt. each 3 You must also include page references.
#3-1 pt. each 3 You must also include page references.
#4-1 pt. each 3 You must also include page references.
#5 1.5
Total Points Part 2 15
*** I will deduct .25 pts. For each spelling and grammar e
or.
***If a company's financial statements are in millions or thousands, please make sure you provide this information in your analysis.
If you do not provide this information for a company that reports in millions or thousands of dollars, I will deduct 1 pt. for each company you did not provide this information for.
Please realize how important this information is to a reader, since there is a big difference between giving inventory amount of $123 and $123,000,000.
Part 1 InstructionsAndSolution
Part 1: Information to use in completing is below and the requirements follow where you will answer the questions.
Grass Mower Company manufacturers a variety of gasoline-powered mowers for discount hardware and department stores.
The company uses a job cost system and treats each customer's order as a separate job.
The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term
contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is
received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled
date that production is to begin as the delivery date for motors and chassis, the scheduled date production is to be completed
is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly
to Work-in-process upon receipt. Upon completion goods are shipped directly to customers rather than transfe
ed to finished goods inventory.
At the beginning of September the company had the following jobs in work-in-process inventories:
Job 1 $19,000
Job 2 15,000
Job 3 16,000
Total $50,000
During September, the following activities took place:
1. Started jobs 4, 5,6, and 7.
2. Ordered and received the following raw materials for specified jobs:
Motors Chassis Wheels Total
Job 2 0 0 $700 $700
Job 3 0 0 1,100 1,100
Job 4 1,500 2,000 1,600 5,100
Job 5 1,000 4,000 1,000 6,000
Job 6 8,000 3,500 900 12,400
Job 7 7,500 3,800 0 11,300
Total $36,600
3. Incu
ed September manufacturing payroll:
Direct Labo
Job 1 $500
Job 2 3,100
Job 3 3,000
Job 4 4,000
Job 5 1,500
Job 6 2,500
Job 7 2,000
Total Direct Labor 16,600
Indirect Labor 4,000
4. Incu
ed additional manufacturing overhead costs for September:
Manufacturing supplies purchased and used 2,000
Depreciation on factory fixed assets 6,000
Factory utilities 4,900
5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead
and predicted annual direct labor cost as follows:
Predicted Annual Overhead $185,250
Predicted Annual Direct Labor cost $195,000
6. Completed and shipped jobs 1 and 6. The following is what was charged to these customers:
Job 1 28,000
Job 6 26,000
Total 54,000
7. Selling and Administrative costs incu
ed in September are the following: $3,900
Required: You need to use cell references to provide answers and calculations.
1. Develop the predetermined overhead rate.
Predetermined overhead rate =Estimated total annual overhead cost/ Estimated total amount of the direct labour...