Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Process Costing Job Order Costing Part 1 Part 2 To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transm ission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Expenses: 25,000 lamps @ $45.00 $30.00 $1,125,000.00 750,000.00 $ 375,000.00 $23,000.00 75,000.00 $ 98.000.00 (Commission per unit) @ $3.00 $ 42,000.00 Fixed 92,000.00 Variable @ $2.00 50,000.00 Total Selling and Administrative Expenses: Net Profit 190,000.00 185.000,00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets 34,710.00 $ 67,500.00 Cash Accounts Receivable Inventory Raw Material 8.000,00 500@ $16.00 0 Lamp Kits Work in Process Finished Goods 90.000.00 3000 @$30.00 200,210.00 Total Current Assets Fixed Assets 20,000.00 6,800.00 Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13.200.00 213,410.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 54,000.00 $ 54,000.00 $ 12,000.00 147,410.00 159,410.00 213,410.00 PART 4 Process Costing - First-In First-Out General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $55,275.00. Of this amount, $52,800.00 was from raw materials added, $1,650.00 for labor and $825.00 for overhead. These 3,300 figurines were assumed to be 25.00% complete as to labor and overhead During January, 23,500 units were started, $379,055.00 of materials and $45,550.00 of labor costs were incurred The 8,000 figurines that were in-process at the end of January were assumed to be 60.00 % complete to labor and overhead. All figurines in January passed inspection. I SEE THE LIGHT Alyssa, when you are ready to have your work graded you will upload this file to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting-A Managerial Perspective, Enter password, Upload Your Excel File. AF4353.xls, or AF4353.xl Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission You may find it easier to work on this project if you print a hard copy of all the pages There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding NL30L TRAIN NOTE If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. Our colortl an Lamp wi ad ectemone to any tranportaton theme ved to decerae a child's room Ehe window hol are cut out to aow e bu ghtght to lgh upthe racks through the eght The Tan Lamp comes complene th a pleate tabr fempshade imed n muncheng he RRac F718 181019 E Vilage Productions 50 Sheet Legal Pad Building Blocks of Accounting.. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your fle as an attachment with your username and password.. riedman@cybertext.com Answer Windows Operating System Select Select Save As Select Seiect a typ wel nay nnkCa File Ece Mecre nab ed erkbet.C Save As Type: Excel Binary Workbook (xlsb) ML D am Segle de W Page m m Feldes Select Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format Select Excel Binary Workbook (xlsb) Select Se A MF12s whew Dumnts Save FermaEscl Wokhook ala) Cesan Cemmonil Excel 97-2004 bok acel Templle Laltd Upload the binary file at cybertext.com cel 37-2004 Templane Lal Comma Seperated Vels Web Page ( POF Opiers andd Compi Saual el Bary Workbook Lxhb DreraneEu WAok m JIUTILLU 50 Sheet Legal Pad Et Vilage Productions Building Blocks of Accounting.. A Financial Perspective Page 2 FAQ What is the difference between roundinga number and rounding upa number? FAQ 02 E F D B C Answer Cost of a Taxi$100.00 1 3 Number of Passengers 2 3 Cost per Passenger Without rounding 33.33333-F1/F2 4 33.33 ROUND(F1/F2,2) 33.34 ROUNDUP(F1/F2,2) Rounding to two decimals Roundup to two decimals 7 When I upload it, the results show that I have an answer wrong, yet that answer is needed for anothor question which is marked correct. FAQ 03 The computer is giving you part credit Width 10 ft Length 12 ft Cost per sq. ft. $6 Answer Given: Find (1.1) Area (1.2) Cost 100 sq ft (wrong) $600 correct based on the wrong area. Note if the area is corrected, 120 sq ft, the cost would be wrong. Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Process Costing Job Order Costing Part 1 Part 2 To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transm ission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Expenses: 25,000 lamps @ $45.00 $30.00 $1,125,000.00 750,000.00 $ 375,000.00 $23,000.00 75,000.00 $ 98.000.00 (Commission per unit) @ $3.00 $ 42,000.00 Fixed 92,000.00 Variable @ $2.00 50,000.00 Total Selling and Administrative Expenses: Net Profit 190,000.00 185.000,00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets 34,710.00 $ 67,500.00 Cash Accounts Receivable Inventory Raw Material 8.000,00 500@ $16.00 0 Lamp Kits Work in Process Finished Goods 90.000.00 3000 @$30.00 200,210.00 Total Current Assets Fixed Assets 20,000.00 6,800.00 Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13.200.00 213,410.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 54,000.00 $ 54,000.00 $ 12,000.00 147,410.00 159,410.00 213,410.00 PART 4 Process Costing - First-In First-Out General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $55,275.00. Of this amount, $52,800.00 was from raw materials added, $1,650.00 for labor and $825.00 for overhead. These 3,300 figurines were assumed to be 25.00% complete as to labor and overhead During January, 23,500 units were started, $379,055.00 of materials and $45,550.00 of labor costs were incurred The 8,000 figurines that were in-process at the end of January were assumed to be 60.00 % complete to labor and overhead. All figurines in January passed inspection. I SEE THE LIGHT Alyssa, when you are ready to have your work graded you will upload this file to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting-A Managerial Perspective, Enter password, Upload Your Excel File. AF4353.xls, or AF4353.xl Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission You may find it easier to work on this project if you print a hard copy of all the pages There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding NL30L TRAIN NOTE If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. Our colortl an Lamp wi ad ectemone to any tranportaton theme ved to decerae a child's room Ehe window hol are cut out to aow e bu ghtght to lgh upthe racks through the eght The Tan Lamp comes complene th a pleate tabr fempshade imed n muncheng he RRac F718 181019 E Vilage Productions 50 Sheet Legal Pad Building Blocks of Accounting.. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your fle as an attachment with your username and password.. riedman@cybertext.com Answer Windows Operating System Select Select Save As Select Seiect a typ wel nay nnkCa File Ece Mecre nab ed erkbet.C Save As Type: Excel Binary Workbook (xlsb) ML D am Segle de W Page m m Feldes Select Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format Select Excel Binary Workbook (xlsb) Select Se A MF12s whew Dumnts Save FermaEscl Wokhook ala) Cesan Cemmonil Excel 97-2004 bok acel Templle Laltd Upload the binary file at cybertext.com cel 37-2004 Templane Lal Comma Seperated Vels Web Page ( POF Opiers andd Compi Saual el Bary Workbook Lxhb DreraneEu WAok m JIUTILLU 50 Sheet Legal Pad Et Vilage Productions Building Blocks of Accounting.. A Financial Perspective Page 2 FAQ What is the difference between roundinga number and rounding upa number? FAQ 02 E F D B C Answer Cost of a Taxi$100.00 1 3 Number of Passengers 2 3 Cost per Passenger Without rounding 33.33333-F1/F2 4 33.33 ROUND(F1/F2,2) 33.34 ROUNDUP(F1/F2,2) Rounding to two decimals Roundup to two decimals 7 When I upload it, the results show that I have an answer wrong, yet that answer is needed for anothor question which is marked correct. FAQ 03 The computer is giving you part credit Width 10 ft Length 12 ft Cost per sq. ft. $6 Answer Given: Find (1.1) Area (1.2) Cost 100 sq ft (wrong) $600 correct based on the wrong area. Note if the area is corrected, 120 sq ft, the cost would be wrong