# B6021 Module 1 Assignment 3 Calculating Inventory New Work

ARGOSY B6021 Module 1 Assignment 3 Calculating Inventory New Work

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B6021 Module 1 Assignment 3 Calculating Inventory New Work

Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance sheet at \$156,800. There was no finished-goods inventory on this date.

Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company’s practical capacity, in terms of direct-labor hours multiplied by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor and manufacturing overhead are \$4,200,000 and \$5,460,000, respectively. Actual results for the year are as follows:

Actual Results

Direct Materials Used

\$5,600,000.00

Direct Labor

\$4,350,000.00

Indirect Material Used

\$65,000.00

Indirect Labor

\$2,860,000.00

Factory Depreciation

\$1,740,000.00

Factory Insurance

\$59,000.00

Factory Utilities

\$830,000.00

\$2,160,000.00

Total

\$17,664,000.00

Job No. 2077 was completed in January 2002 and there was no work in process at year-end. All jobs produced during 2002 were sold with the exception of Job No. 2143, which contained direct-material costs of \$156,000 and direct-labor charges of \$85,000. The company charges any under- or over-applied overhead to the cost of goods sold category.

Using the above information, do the following:

Calculate the company’s predetermined overhead application rate.

Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.

Calculate the finished-goods inventory for the 12/31/01 balance sheet.

Calculate the over-applied or under-applied overhead at year-end.

Explain if it is appropriate to include selling and administrative expenses in the cost of goods sold category.

Perform your calculations in an Excel spreadsheet and copy the calculations into a Word document. Your final product should be a 1-page paper in Word format. Apply APA standards to citation of sources.

# ARGOSY B6021 Module 2 Assignment 2 Borealis Manufacturing Company New Work

ARGOSY B6021 Module 2 Assignment 2 Borealis Manufacturing Company New Work

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B6021 Module 2 Assignment 2 Borealis Manufacturing Company New Work

Borealis Manufacturing has just completed a major change in its quality control (QC) process. Previously, products had been reviewed by QC inspectors at the end of each major process, and the company’s 10 QC inspectors were charged to the operation or job as direct labor. In an effort to improve efficiency and quality, a computerized video QC system was purchased for \$250,000. The system consists of a minicomputer, fifteen video cameras, and other peripheral hardware and software. The new system uses cameras stationed by QC engineers at key points in the production process. Each time an operation changes or there is a new operation, the cameras are moved, and a new master picture is loaded into the computer by a QC engineer. The camera takes pictures of the units in process, and the computer compares them to the picture of a “good” unit. Any differences are sent to a QC engineer, who removes the bad units and discusses the flaws with the production supervisors. The new system has replaced the 10 QC inspectors with two QC engineers.

The operating costs of the new QC system, including the salaries of the QC engineers, have been included as factory overhead in calculating the company’s plant-wide manufacturing-overhead rate, which is based on direct-labor dollars. The company’s president is confused. His vice president of production has told him how efficient the new system is. Yet there is a large increase in the overhead rate. The computation of the rate before and after automation is as follows:

Before After

Budgeted Direct Labor Cost 1,000,000 700,000

“Three hundred percent,” lamented the president. “How can we compete with such a high overhead rate?”

Using the module readings and the Argosy University online library resources, research manufacturing overhead.

Review the situation. Complete the following:

Cite three examples of typical costs that would be included in manufacturing overhead.

Explain why companies develop predetermined overhead rates.

•Explain why the increase in the overhead rate should not have a negative financial impact on Borealis Manufacturing.

•Explain how Borealis Manufacturing could change its overhead application system to eliminate confusion over product costs.

•Describe how an activity-based costing system might benefit Borealis Manufacturing.

# ARGOSY B6021 Module 2 Assignment 2 Manufacturing Overhead New Work

ARGOSY B6021 Module 2 Assignment 2 Manufacturing Overhead New Work

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B6021 Module 2 Assignment 2 Manufacturing Overhead New Work

Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance sheet at \$156,800. There was no finished-goods inventory on this date.

Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company’s practical capacity, in terms of direct-labor hours multiplied by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor and manufacturing overhead are \$4,200,000 and \$5,460,000, respectively. Actual results for the year are as follows:

Actual Results

Direct Materials Used

\$5,600,000.00

Direct Labor

\$4,350,000.00

Indirect Material Used

\$65,000.00

Indirect Labor

\$2,860,000.00

Factory Depreciation

\$1,740,000.00

Factory Insurance

\$59,000.00

Factory Utilities

\$830,000.00

\$2,160,000.00

Total

\$17,664,000.00

Job No. 2077 was completed in January 2002 and there was no work in process at year-end. All jobs produced during 2002 were sold with the exception of Job No. 2143, which contained direct-material costs of \$156,000 and direct-labor charges of \$85,000. The company charges any under- or over-applied overhead to the cost of goods sold category.

Using the above information, do the following:

Calculate the company’s predetermined overhead application rate.

Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.

Calculate the finished-goods inventory for the 12/31/01 balance sheet.

Calculate the over-applied or under-applied overhead at year-end.

Explain if it is appropriate to include selling and administrative expenses in the cost of goods sold category.

Perform your calculations in an Excel spreadsheet and copy the calculations into a Word document. Your final product should be a 1-page paper in Word format. Apply APA standards to citation of sources.

# ARGOSY B6021 Module 3 Assignment 2 LASA 1 Cost and Decision-Making Analysis New Work

ARGOSY B6021 Module 3 Assignment 2 LASA 1 Cost and Decision-Making Analysis New Work

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B6021 Module 3 Assignment 2 LASA 1 Cost and Decision-Making Analysis New Work

Cost and Decision-Making Analysis

Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation.

Cheryl: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the President yesterday.”

Wes: “What’s the problem?”

Cheryl: “The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”

Wes: “I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.”

Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:

Velcro

Metal

Nylon

Normal annual sales volume

100, 000 units

200,000 units

400,000 units

Unit selling price

\$1.65

\$1.50

\$0.85

Variable cost per unit

\$1.25

\$0.70

\$0.25

Total fixed expenses are \$400,000 per year.

All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.

The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories.

Using the module readings, the Argosy University online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course.

Respond to the following:

Calculate the company’s overall break-even point in total sales dollars. Explain your methodology.

Of the total fixed costs of \$400,000: \$20,000 could be avoided if the Velcro product were dropped, \$80,000 if the Metal product were dropped, and \$60,000 if the Nylon product were dropped. The remaining fixed costs of \$240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages):

Calculate the break-even point in units for each product. Explain your methodology.

Determine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results.

Evaluate costing systems for this company. Explain if this company should be using a job order or process-costing system to accumulate costs (1 page).

Your final product will be a Word document, approximately 5-6 pages in length.

Apply APA standards to citation of sources. Be sure to include your calculations in Microsoft excel format.

# ARGOSY B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

ARGOSY B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

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B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis

Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department.

The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held on the third Tuesday of each month since Robert Ferguson, Jr., the president’s son, had become plant manager a year earlier.

As they were walking, Tom Emory spoke: “Boy, I hate those meetings! I never know whether my department’s accounting reports will show good or bad performance. I’m beginning to expect the worst. If the accountants say I saved the company a dollar, I’m called ‘Sir,’ but if I spend even a little too much—boy, do I get in trouble. I don’t know if I can hold on until I retire.”

Tom had just been given the worst evaluation he had ever received in his long career with Ferguson & Son. He was the most respected of the experienced machinists in the company. He had been with the company for many years and was promoted to supervisor of the machine shop when the company expanded and moved to its present location. The president (Robert Ferguson, Sr.) had often stated that the company’s success was due to the high-quality work of machinists like Tom. As supervisor, Tom stressed the importance of craftsmanship and told his workers that he wanted no sloppy work coming from his department.

When Robert Ferguson, Jr., became the plant manager, he directed that monthly performance comparisons be made between actual and budgeted costs for each department. The departmental budgets were intended to encourage the supervisors to reduce inefficiencies and to seek cost reduction opportunities. The company controller was instructed to have his staff “tighten” the budget slightly whenever a department attained its budget in a given month; this was done to reinforce the plant manager’s desire to reduce costs. The young plant manager often stressed the importance of continued progress toward attaining the budget; he also made it known that he kept a file of these performance reports for future reference when he succeeded his father.

Tom Emory’s conversation with Jim Morris continued as follows:

Emory: I really don’t understand. We’ve worked so hard to meet the budget, and the minute we do so they tighten it on us. We can’t work any faster and still maintain quality. I think my men are ready to quit trying. Besides, those reports don’t tell the whole story. We always seem to be interrupting the big jobs for all those small rush orders. All that setup and machine adjustment time is killing us. And quite frankly, Jim, you were no help. When our hydraulic press broke down last month, your people were nowhere to be found. We had to take it apart ourselves and got stuck with all that idle time.

Morris: I’m sorry about that, Tom, but you know my department has had trouble making budget, too. We were running well behind at the time of that problem, and if we had spent a day on that old machine, we would never have made it up. Instead, we made the scheduled inspections of the forklift trucks because we knew we could do those in less than the budgeted time.

Emory: Well, Jim, at least you have some options. I’m locked into what the scheduling department assigns to me and you know they’re being harassed by sales for those special orders. Incidentally, why didn’t your report show all the supplies you guys wasted last month when you were working in Bill’s department?

Morris: We’re not out of the woods on that deal yet. We charged the maximum we could to other work and haven’t even reported some of it yet.

Emory: Well, I’m glad you have a way of getting out of the pressure. The accountants seem to know everything that’s happening in my department, sometimes even before I do. I thought all that budget and accounting stuff was supposed to help, but it just gets me into trouble. It’s all a big pain. I’m trying to put out quality work; they’re trying to save pennies.

Review the case. Respond to the following:

Identify the problems that appear to exist in Ferguson & Son Manufacturing Company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system.

Explain how Ferguson & Son Manufacturing Company’s budgetary control system could be revised to improve its effectiveness.

Explain how the use of an activity-based costing system could change the results of the budget, if utilized.

As stated in the case, many employees have “quit trying” and have altered behavior on the job. Provide specific ways for how one would use a budget to change employee behavior and align goals in the organization.

Explain how goal alignment can improve profitability and overall return to the shareholders of the company.

Synthesize data to explain the concept of ROI and describe how the use of an activity-based costing system can improve the company’s ROI and the potential impact on free cash flow.

Write a 6–8 page report in Word format. Apply APA standards to citation of sources.

# ARGOSY B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

ARGOSY B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

Check this A+ tutorial guideline at

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B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis New Work

B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis B6021 Module 5 Assignment 2 LASA 2 Manufacturing Budget Analysis

Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department.

The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held on the third Tuesday of each month since Robert Ferguson, Jr., the president’s son, had become plant manager a year earlier.

As they were walking, Tom Emory spoke: “Boy, I hate those meetings! I never know whether my department’s accounting reports will show good or bad performance. I’m beginning to expect the worst. If the accountants say I saved the company a dollar, I’m called ‘Sir,’ but if I spend even a little too much—boy, do I get in trouble. I don’t know if I can hold on until I retire.”

Tom had just been given the worst evaluation he had ever received in his long career with Ferguson & Son. He was the most respected of the experienced machinists in the company. He had been with the company for many years and was promoted to supervisor of the machine shop when the company expanded and moved to its present location. The president (Robert Ferguson, Sr.) had often stated that the company’s success was due to the high-quality work of machinists like Tom. As supervisor, Tom stressed the importance of craftsmanship and told his workers that he wanted no sloppy work coming from his department.

When Robert Ferguson, Jr., became the plant manager, he directed that monthly performance comparisons be made between actual and budgeted costs for each department. The departmental budgets were intended to encourage the supervisors to reduce inefficiencies and to seek cost reduction opportunities. The company controller was instructed to have his staff “tighten” the budget slightly whenever a department attained its budget in a given month; this was done to reinforce the plant manager’s desire to reduce costs. The young plant manager often stressed the importance of continued progress toward attaining the budget; he also made it known that he kept a file of these performance reports for future reference when he succeeded his father.

Tom Emory’s conversation with Jim Morris continued as follows:

Emory: I really don’t understand. We’ve worked so hard to meet the budget, and the minute we do so they tighten it on us. We can’t work any faster and still maintain quality. I think my men are ready to quit trying. Besides, those reports don’t tell the whole story. We always seem to be interrupting the big jobs for all those small rush orders. All that setup and machine adjustment time is killing us. And quite frankly, Jim, you were no help. When our hydraulic press broke down last month, your people were nowhere to be found. We had to take it apart ourselves and got stuck with all that idle time.

Morris: I’m sorry about that, Tom, but you know my department has had trouble making budget, too. We were running well behind at the time of that problem, and if we had spent a day on that old machine, we would never have made it up. Instead, we made the scheduled inspections of the forklift trucks because we knew we could do those in less than the budgeted time.

Emory: Well, Jim, at least you have some options. I’m locked into what the scheduling department assigns to me and you know they’re being harassed by sales for those special orders. Incidentally, why didn’t your report show all the supplies you guys wasted last month when you were working in Bill’s department?

Morris: We’re not out of the woods on that deal yet. We charged the maximum we could to other work and haven’t even reported some of it yet.

Emory: Well, I’m glad you have a way of getting out of the pressure. The accountants seem to know everything that’s happening in my department, sometimes even before I do. I thought all that budget and accounting stuff was supposed to help, but it just gets me into trouble. It’s all a big pain. I’m trying to put out quality work; they’re trying to save pennies.

Review the case. Respond to the following:

Identify the problems that appear to exist in Ferguson & Son Manufacturing Company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system.

Explain how Ferguson & Son Manufacturing Company’s budgetary control system could be revised to improve its effectiveness.

Explain how the use of an activity-based costing system could change the results of the budget, if utilized.

As stated in the case, many employees have “quit trying” and have altered behavior on the job. Provide specific ways for how one would use a budget to change employee behavior and align goals in the organization.

Explain how goal alignment can improve profitability and overall return to the shareholders of the company.

Synthesize data to explain the concept of ROI and describe how the use of an activity-based costing system can improve the company’s ROI and the potential impact on free cash flow.

Write a 6–8 page report in Word format. Apply APA standards to citation of sources.