Baking Company uses an automated process to produce a baking product. For March, the company had the following activities in the pounding department, which is followed by themixing department: Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. After the pounding process is done the costs and next production department is the mixing department.The pounding process is the first department in the process.

Project 1 Name: Christian Garcia Graduate Students Please use this file as your template to complete project 1 using the information provided in Parts 1-4 worksheets to develop your solutions to each independent part. Save your file using your first initial, last name, and name of Project. Upload your solution by clicking on the project 1 assignment link. Make sure you type your name in cell A2 You should always verify that your project has been loaded correctly by either going back to the assignment and clicking on Ok and you should see the file you uploaded and you can also go to view grades and click on the exclamation to see the file you have loaded. Remember it is your responsibility to take the time to verify that your file has uploaded correctly. If there are problems, please contact me immediately. You will be graded on the accuracy of your answer and the usage of excel. You must use excel cell referencing in all of your calculations. The project 1 solution is worth a total of 70 pts. I have demonstrations in the chapter 6 and 10 folders in the Toolbox area. I do not pregrade projects, so if you have questions please make sure you ask a specific question. Project 1- Objectives Part 1-Preparation of Prodution Reports 1. Prepare the departmental productin report using the weighted average method. 1. Prepare the departmental productin report using the FIFO method. 3. Develop the appropriate journal entry to transfer from costs to the next department. Part 2-Performance Evaluation and Transfer Pricing 1. Compute ROI and Residual 2. Develop a recommendation to management on a capital expenditure 3. Determine tranfer prices based on the opportunity cost method Part 3-Normal and Abnormal Spoilage in Process Costing 1. Analyze the flow when normal and abnormal spoilage has occurred. 2. Determine the loss due to spoilage. 3. Prepare the journal entry related to spoilage. Part 4-Ethical Considerations 1. Review an ethical case to review ethical behavior. 2. Explain how income measures should be used to prevent unethical behavior. Project 1 Grading Rubric: Part 1 Weighted Average production report Step 1 Step 2 Steps 3 & 4 Step 5 Journal entry FIFO production report Step 1 Step 2 Steps 3 & 4 Step 5 Journal entry Total points possible Part 1 Part 2 Part 2A #1 #2a #2b #3 #4 Part 2B #1 2a 2b 2c 3a 3b 3c 3d Total points possible Part 2 Part 3 #1 #2 #3 #4 #5 #6 #7 #8 Total points possible Part 3 Part 4 Complete Problem 10.35 on worksheet provided Each question worth 1 pts. Article Summary-graded on content and proper English. I will deduct .5 pts. for each spelling error. Total points possible Part 4 Total points possible Project 1 1 3 4 2 2.5 1 3 4 2 2.5 25 2 2 2 2 2 2 2 2 2 2 2 2 1 25 2 2 1 1 1 1 1 1 10 5 5 10 70 Part 1 Instructions If you do not understand my format, please ask questions via the discussion board or e-mail me. Remember I have videos and support material in the chapter 6 folder in the Toolbox area. You will be graded on your accuracy of your answer and the usage of excel. Your production report should have no numbers typed in. The production report should be made up of cell references or formulas only. Baking Company uses an automated process to produce a baking product. For March, the company had the following activities in the pounding department, which is followed by the mixing department: Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. After the pounding process is done the costs and next production department is the mixing department. The pounding process is the first department in the process. DATA for the pounding department: Physical Units Beginning work-in-process 2,000 units Degree of Completion of Beginning Work in process Started During March 12,000 units Completed and transferred out during March 10,000 units Ending Work In process Inventory ???? units Degree of Completed of ending work in process Total costs Added during March Direct Conversion Total Materials Costs Costs $3,920 $3,850 $7,770 100% 80% 100% $20,160 45% $5,000 $25,160 You may find it helpful to compute the following units and percentage so you can reference this information as data to complete my production reports. You are more than welcome to set up your own Data information on this DATA worksheet to reference on your production reports. I set this up when I developed the 2 production reports, so I know you need this information, too. Calculate the Units started and completed and the ending work-in-process for the pounding department. Units started and completed Units Ending Work in process Units Determine the percentage of materials and conversion costs used(added) in the current period (March) for the pounding department's beginning, units started and completed, and ending work-in-process. Materials Conversion costs Beginning work in process Units started and completed Ending work-in-process Required: 1. Prepare a production report for the pounding department using weighted average. Please use the worksheet named weighted average and use only cell referencing and formulas on your production report using this DATA worksheet for your data. 2. Prepare the journal entry to show the costs flowing from the pounding department to the mixing department. You can type in the journal entry below your production report on the appropriate worksheet. 3. Prepare a production report for the pounding department using FIFO. Please use the worksheet named FIFO and use only cell referencing and formulas on your production report using this DATA worksheet for your data. 4. Prepare the journal entry to show the costs flowing from the pounding department to the mixing department. You can type in the journal entry below your production report on the appropriate worksheet. Part 1 Weighted average Production Report-Pounding Department Quantity Schedule and Equivalent units Guidance: Quantity Don't forget to use cell references Step 1 Schedule Guidance: Units to account for: Your total units in cell E9 must equal your total in cell e15 for total units to be assigned costs. Work in process, BI Started in production Total Units Equivalent Units Materials Conversion Step 2 Units to be assigned costs: Transferred to next department Work in process, EI Total units to be assigned cost Costs Unit cost: Step 3 Total cost Costs Materials Conversion Whole Unit Beginning Inventory Current cost this period Cost to account for: (a) Total equivalent units(taken from above)(b) Cost per equivalent unit (a/b) Step 4 Cost Reconciliation: Step 5 Guidance: This is an optional computation, but I like to do this, since it makes my calculation for cost reconciliation easier. Transferred to next department Work in process, EI balance Total cost to be accounted for: 4. Prepare the journal entry Guidance: This is a good check figure. Cell e30should equal e25. Part 1 FIFO Method Production Report-Pounding Department Quantity Schedule and Equivalent units Quantity Step 1 Schedule Units to account for: Guidance: Your total units in cell E9 must equal your total in cell e17 for total units to be assigned costs. Work in process, BI Started in production Total Units Equivalent Units Materials Conversion Step 2 Units to be assigned costs: Work in process, BI Started and completed this period Total units transferred out Work in process, EI Total units to be assigned cost Costs Unit cost: Step 3 Total cost Work in Process, Beginning Costs Whole Materials Conversion Unit Costs of work done before current period, therefore do not show amount for materials and conversion costs under FIFO Current cost this period (a) Total equivalent units(taken from above)(b) Guidance: This is an optional computation, but I like to do this, since it makes my calculation for cost reconciliation easier. Cost per equivalent unit (a/b) Total Costs to account for Step 4 Cost Reconciliation(Assignment of Costs): Step 5 Work in process, BI balance Costs to complete BI Total cost of BI Started and Completed Units Transferred out cost Work in process, EI balance Total cost to be accounted for: Guidance: This is a good check figure. Cell e36 should equal e27. 4. Prepare the journal entry to record the transfer of costs to the next department Part 2A Tool Industries produces tool machinery for manufacturers. The company expanded vertically in 20x1 acquiring one of its supp To manage the two separate business, the operations of the alloy steel plates are reported separately as an investment center, Tool Industries evaluates its investment centers on the basis of both unit contribution and return on average investment (ROI), w assets employed. Management bonuses are determined on ROI. All investments in operating assets are expected to earn a Alloy Steel Plates Investment Center cost of goods sold is considered to be entirely variable, which the administrative expenses Selling expenses are a mixed cost with 40% attributed to sales volume Alloy Steel Plates Investment Center operating assets employed were Alloy Steel Plates Investment Center produced and sold the following units for year ended December 31, 20x2 The 20x2 operating statement for Alloy Steel Plates Investment Center follows: Alloy Steel Plates Investment Center Operating Statement For the year ended December 31, 20x2 Sales Revenue Less Expenses: Cost of goods sold Administrative expenses Selling expenses Operating income before income taxes $ 16,500,000 3,955,000 2,700,000 Required: Answer the requirements under each of the required 4 areas. If you need to make a calculation you must pr 1. Calculate the unit contribution (rounded to the nearest cent) for the Alloy Steel Plates Investment Center for the year ended 2. Calculate the following performance measures for 20x2 for Alloy Steel Plates Investment Center. a. Pretax return on average investment in operating assets employed (ROI) b. Residual income calculated on the basis of average operating assets employed. 3. Explain why the management of Alloy Steel Plates Investment Center would be more likely to accept the following contempla using residual income rather than ROI were used as performance measure. 4. Alloy Steel Plates Investment Center is a separate investment center within Tool Industries. Identify 3 items that Alloy Steel evaluated fairly by either the ROI or residual income performance measures. Make sure you explain why you picked these 3 ite ny expanded vertically in 20x1 acquiring one of its suppliers of alloy steel plates. plates are reported separately as an investment center, which will now be titled Alloy Steel Plates Investment Center. t contribution and return on average investment (ROI), with investment defined as average operating investments in operating assets are expected to earn a minimum return of 13% before income taxes. o be entirely variable, which the administrative expenses are NOT dependent on volume. to sales volume nits for year ended December 31, 20x2 $12,600,000 at December 31, 20x2 which is a 1,187,000 units 5% vestment Center December 31, 20x2 $ 25,000,000 $ $ 23,155,000 1,845,000 areas. If you need to make a calculation you must provide cell references to earn credit. Alloy Steel Plates Investment Center for the year ended December 31, 20x2. el Plates Investment Center. employed (ROI) ating assets employed. er would be more likely to accept the following contemplated capital acquisition with an estimated ROI of r within Tool Industries. Identify 3 items that Alloy Steel Plates Investment Center would control if it is sures. Make sure you explain why you picked these 3 items to control and how these items impact these performance measures. ment Center. before income taxes. increase over January 1, 20x1 balance. 14.50% performance measures. Part 2B Cooking Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Divisio and the Housing Division. Each divisional manager is evaluated on the basis of ROI. The company uses the opportunity cost approach to make sure there is goal congruence. The Appliance Division produces a small automatic dishwasher the Housing Division can use in one of its models. Appliance division can produce up to 20,000 of these dishwashers per year. The variable costs of manufacturing the dishwashers are The Housing Division inserts the dishwasher into the model house and then sells the house. Required: Answer the requirements under each of the required 3 areas. If you need to make a calculation you must pr 1. Assume that all the dishwashers produced can be sold to external customers for The Housing Division wants to buy 4,000 dishwashers per year. What should be the transfer price? Why? Make sure you exp 2. A. B. C. Refer to requirement #1 above. Assume there is Identify the minimum transfer price. Identify the maximum transfer price. Identify the actual price, assuming that negotiation splits the difference. 3. Assume that the Appliance Division is producing and selling The Housing Division is currently buying Assume that any joint benefit will be split evenly between the two divisions. $24 75% capacity. 4,000 dishwashers from an outside sup A. What is the expected transfer price based on this information in #3 ? B. How much with the profits of Appliance Division increase, assuming that it sells the extra 4,000 dishwashers internally? C. How much with the profits of Housing Division increase, assuming that it buys the 4,000 dishwashers internally? D. How much will the profits of the firm increase under this arrangement in #3? visions are the Appliance Division n one of its models. of these dishwashers per year. $98 make a calculation you must provide cell references to earn credit. $320 each rice? Why? Make sure you explain your answer. avoidable distribution costs that will not be incurred if the company sells internally. dishwashers from an outside supplier at 000 dishwashers internally? shwashers internally? $290 Each Part 3 For Graduate Students Business Inc. produces all of its products in one department, The Production Department, and transfers the costs to The production department adds all direct materials at the beginning of the process. Inspection takes place at the end of the process and are considered abnormal spoilage. In March the department reported the following data: Beginning work in process as of March 1st 2000 units 30% Complete Costs added during March During March: 6,500 units Started 7000 Good units were transferred out to Finished goods. 500 units remained in ending work in process. 45% Complete Required: Answer the following requirements under each of the 8 areas. You must use cell referencing in y 1. Prepare a physical flow schedule like page 297 shown as step 1 in the area below. 2. Calculate equivalent units of production using the weighted average method for direct materials and con 3. Calculate the unit cost. 4. Calculate the cost of goods transferred out. 5. Calculate ending Work in process. 6. Calculate the loss due to abnormal spoilage. 7. Prepare the journal entry that transfers the goods from the production department to Finished goods. 8. Prepare the journal entry to record abnormal spoilage. ment, and transfers the costs to finished goods. Cost of Direct materials $500 Conversion costs $140 Cost of Direct materials $1,625 Conversion costs $2,163.00 must use cell referencing in your calculations to earn credit. d for direct materials and conversion costs like the second step on page 297. rtment to Finished goods. Part 4 Required: Complete problem 10.35 and provide an article summary of this article: Farrell, A., C.P.A., Jutte, L., Kadous, K., C.P.A., Shacke Provide your solution below for the 5 questions and make sure you show your calculations where applicable. Make sure you provide a detail explanation/response to each question in order presented in Problem 10-35. Provide an article summary of the article listed above, which can be accessed in the BU online library. You can copy the URL in The Article Summary should include the following, but do not feel limited by this list. 1. State the major points made in the article. 2. What was the author attempting to convey? Provide in your analysis how well the author accomplished his/her goal. 3. Did the article provide you with additional insight concerning this topic? Explain. L., Kadous, K., C.P.A., Shackell, M., C.P.A., Towry, K. L., & Young, K., C.P.A. (2017). DO YOU WANT LINKAGES WITH THAT? Strategic Fi applicable. brary. You can copy the URL into your browser to access this article. You can copy your article summary into the textbox below that has the ccomplished his/her goal. GES WITH THAT? Strategic Finance, 99(1), 40-47. Retrieved from http://ezproxy.bellevue.edu/login?url=https://search-proquest-com.ezprox the textbox below that has the format of what I am requiring. ://search-proquest-com.ezproxy.bellevue.edu/docview/1918836789?accountid=28125