Instructions Cookie Business Final Project Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information

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InstructionsCookie Business Final ProjectNow that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project. The learning objectives of this project are as follows:

  1. Apply accounting concepts and standards to the creation of accounting information and reports.
  2. Analyze accounting information used to make strategic business decisions.
  3. Apply ethical behavior to accounting-related situations.
  4. Make business decisions based on analyzing accounting data.

Using the  Unit VII Final Project Template , prepare a four- to five-page written report (including spreadsheets) with at least three scholarly sources. Your report will provide the following information:

Introduction

Part 1: Based on the data presented in the  Unit VII Spreadsheet Template in Excel (CM Breakeven tab):

  • Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
  • Calculate the weighted average CM.
  • Calculate the breakeven point.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.

Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.

  • Calculate the value of ending inventory under full or absorption costing.
  • Calculate the value of ending inventory under variable costing.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.

Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order.

Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.

Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.

Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.

  • Calculate the material variances.
  • Calculate the labor variances.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.

Conclusion and Recommendations

Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.

Be sure to use APA formatting throughout, and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report.

Instructions Cookie Business Final Project Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information
Cookie Business Project George Landry Columbia Southern University 07/18/2021 Cookie Business Project Turning a concept into a product needs an entrepreneur to establish a reliable and efficient business plan. According to La Rocca (2020), the process of developing a business plan enables an investor to recognize the specific actions that are required to successfully monetize a business idea. Development of a business plan also establishes a platform where an investor can implement crucial initiatives such as locating and selecting the best marketing tools and getting the source of funding for the firm. Furthermore, setting of goals and aligning the business with them is fundamental to every investor. However, without a business plan, an organization can achieve significant success at is bound to fail in future. The proposed company here will is named Sweet Cookie Company. There is significant growth in the cookie business due to high preference of cookies by teenagers and young adults. The main target population for cookies are the young adults and teenagers falling in the age of 16-24 years. This document will provide a detailed discussion of the company’s mission statement, location, and further calculate cost of sales for each cookie based on the job order and process costing approaches. Additionally, the report will provide an analysis and a comparison between the two costing approaches and recommend the best for Sweet Cookie Company. Part I Sweet Cookie Company is a start-up that will be operating from San Francisco, California. The focus of the company is to provide top quality cookies that will enable it to remain competitive within and outside California. The organization will establish close relationships with clients and provide high-quality products, yet affordable to all customers. Sweet Cookie Company will be manufacturing Chocolate Chips Cookies, which are among the most preferred types of cookies. The organization’s mission statement will be “to provide one-of-a-kind, high-quality cookies made with fresh, natural ingredients that have a delectable taste.” To ensure that the company competes well with already established brands, it will have to provide its cookies at a fair price to attract more customers and get a market share. Part II Calculation of the Price Per Cookie Using Job Order Costing Costs Charged per Job Current Month Cost Summary Direct Materials $150 $150 Direct Labor $320 $320 Overhead (30% of direct labor) $96 $96 Total $566 $566 Units Completed ÷ 1000 Product Unit Cost $0.57 Sales Estimate per unit $1.00 Calculation of the Price Per Cookie Using Process Costing Estimation Units $ Units $ 1,000 150 Conversion to Finished goods (40%) 1,000 792 320 96 566 Abnormal gain 126 792 Total 792 Cost per Unit $0.792 Sales price per cookie $1.20 As per the calculations from the above tables, the data shows job order costing is the lesser of the two-cost analysis. The difference in price between the two approaches arises from the product’s conversion rate (Stout, 2014). Per the table above, the price of a cookie needs to be $1.20 if one was to use process cost outcome. Part III Job costing refers to the process of determining a product’s cost based on the manufacturing task. The use of managerial accounting ensures that a track for every job is kept over the product development cycle. Job costing comprises of creating a product that is meant to meet the needs of the customer. This approach is mainly utilized in projects that have specific standards. For this particular instance, the process costing refers to an approach of computing the cost of production based on the process that the product goes through (Stout, 2014). It is until when an end product id formed, when the result of every stage becomes the input of the next. Process costing is an efficient way of settling on how much similar products made in massive quantities will cost. Nevertheless, Garrison (2020) notes that the process is suitable for large-scale production where the products have to pass through different states of manufacturing. Both the job and process costing methods are meant to achieve the same goals for every manufacurng organization. The aim is to figure out the cost of making a single unit of a product (Garrison, 2020). Furthermore, the cost flows for both the job and process approaches are similar. Despite the similarities shared by these approaches, there are various significant differences that separate them considerably. Grlfflth (2020) notes that the job costing approach provides estimates cost for particular items, while the process costing is utilized to generate standardized products. Therefore, the nature of the items made using the two approaches differ significantly. Additionally, there is a cost assignment difference between the two approaches. What this indicates is that the job is the core of the cost. The cost of production in every step is divided by the number of production units following its computation, meaning that the process is the core of cost (Garrison, 2020). It is also worth noting that applying each strategy will vary based on the industry. Job costing has been found to be very useful in industries that make items founded on specifications of customer orders. Thus, the approach is not appropriate for the production of cookies by the Sweet Cookies Company. On the other hand, process costing has proved to be more appropriate for companies such as Sweet Cookie Company as they manufacture their products at a large scale. There is also a different in the control strategies for the two approaches. In process costing, the commodities end up losing their identity as the process of production continues, while in job costing, every job is unique its own way. Process costing seems to be the ideal and optimal approach that Sweet Cookie Company should implement. The approach has proved to be more efficient and effective as compared to job costing. It is worth noting that the production of cookies is a continues process that is more favorable when using process costing (Grlfflth, 2020). The process of manufacturing the cookies include different steps such as dough preparation, molding, shaping, baking the cookies, assembling packaging and many more. Therefore, process costing is the best approach here as it will ensure that each task is completed efficiently. Moreover, process costing is the ideal approach in this case to determine the unit cost of producing cookies as they are all identical (Grlfflth, 2020). Part IV Increase in the number of units sold for cookies will result to an increase in the total income. Therefore, the income for Sweet Cookies Company will increase with increase the quantity of cookies sold, as shown in the above tables. All the cookies are the same, and each unit sold will increase the sales revenue of Sweet Cookies Company (Stout, 2014). Furthermore, a reduction in the quantity of cookies sold will lead to sales revenue for the company. What this indicate is that the total revenue of a product is relative to the quantity sold. Findings The aim of Sweet Cookie Company is to make unique, high-quality, delectable and affordable cookies that appeal to the tastes and preferences of the target population and market. Everything leads the company to the conclusion that the main priority should be making chocolate chip cookies over all others. Therefore, the process costing approach will be ideal in this case as is suitable for mass production of similar product on a wide scale. The data show the use of the job costing method is the way to go. However, job costing is not ideal for the production of the cookies as the production process follows steps. Therefore, the company should utilize process costing to make cost estimates of the product and make sales at a price that will enable it to penetrate the market during its initial periods of operations. If the business maintains the selling price of the product at $1.20 per unit, it will garner $.40 profit per unit. Consequently, the company should implement robust product advertising in order to grow market share, which will result in higher sales revenues. References Garrison, R. (2020). Managerial accounting. Mcgraw-hill US Higher Ed. Grlfflth, J. (2020). Costing Methods. Physiotherapy, 77(3), 187. https://doi.org/10.1016/s0031- 9406(10)61705-1 La Rocca, M. (2020). General management: imprenditorialità, business model e business plan (entrepreneurship, business modelling and business planning). SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3839364 Stout, D. (2014). Regression analysis: instructional resource for cost/managerial accounting. Accounting Education, 24(1), 57-73. https://doi.org/10.1080/09639284.2014.974197
Instructions Cookie Business Final Project Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information
1 Title of the Paper Goes Here Student Name Institution ACC 5301 Management Applications of Accounting Instructor Date Abstract The abstract is an overview of the paper, written after completion. Other researchers use the abstract to determine if your work will be useful to them. The abstract should include the background, hypothesis or research question, methodology for data collection and analysis, the findings of your research, and conclusions. It should be between 100–150 words. This is done when the paper is complete. Title of Paper Remember this part of the paper is double spaced in APA format. The Introduction should lead readers into the topic and its importance. Introductions typically include the overall topic of the paper, the specific focus of the paper within the larger topic, the main points in the paper, the kind of paper (study, argument, critique, discussion), and the purpose. Writing tip: The length of the introduction should be in proportion to the length of the paper. Also ask yourself, “With my purpose and my audience, how do I engage my readers best?” In the introduction, you set the tone of the piece, establish your voice, and demonstrate your writing style; be authentic to your purpose and your audience. Part 1 Contribution Margin/Breakeven Embed your spreadsheet for this section here and discuss the results. Part 2 Full and Variable Costing Embed your spreadsheet for this section here and discuss the results. Part 3 Special Order Embed your spreadsheet for this section here and discuss the results. Part 4 Internal Rate of Return Embed your spreadsheet for this section here and discuss the results. Part 5 Cash Budget Embed your spreadsheet for this section here and discuss the results. Part 6 Material and Labor Variance Embed your spreadsheet for this section here and discuss the results. Conclusions and Recommendations The conclusion section should summarize for the readers the topics of importance that led to your final conclusions/analysis regarding this case. Include some specific areas of focus from your analysis to reinforce your conclusion. References Include complete references in proper APA format for all of the citations listed in your paper. Be sure to use the library for the required number of sources. Additional sources can be used but should be scholarly. Present your references in alphabetical order.

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