CD1 -Excel Tutorial Mike Cichanowski founded Wenonah Canoe and later purchased Current designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes from the canoe company's headquarters in Winona, Minnesota Current Designs makes kayaks using two different processes. (See www.cdkayak.com/craftsmanship/index.php for the details of each method.) The rotational molding process uses high temperature to melt polyethylene powder in a closed rotating metal mold to produce a complete kayak hull and deck in a single piece. These kayaks are less labor-intensive and less expensive for the company to produce and sell. Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as the composite process). Layers of fiberglass high-pressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of skilled labor as each boat is individually finished. The or Kevlar are carefully placed by hand in a mold and are bonded with resin. Then, a exquisite finish of the vacuum-bagged composite kayaks gave rise to Current Designs' tag line, "A work of art, made for life." Current Designs has the fol lowing managers: Mike Cichanowski, CEO Diane Buswell, Controller Deb Welch, Purchasing Manager Bill Johnson, Sales Manager Dave Thill, Kayak Plant Manager Rick Thrune, Production Manager for Composite Kayaks Instructions (a) What are the primary information needs of each manager? (b) Name one special-purpose management accounting report that could be designed for each manager: Include the name of the report, the information it would contain, and how frequently it should be issued. (c) When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the following items. Classify each item as a product cost or a period cost. If an item is a product cost, note if it is a didrect materials, direct labor, or manufacturing overhead item. What are the primary information needs of each manager? a Response: (b) Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued rt frequency Name of report Manager Mike Cichanowski Report content Diane Buswell Deb Welch Bill Johnson Dave Thill Rick Thrune (c) When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the following items. Classify each item as a overhead item by placing an "X" in the appropriate box below. product cost or a period cost. If a cost is a product cost, note if it is a direct materials, direct labor, or manufacturing Product Costs Mfg. Direct Direct Period Materials Payee Purpose Labor Overhead Costs Winona Agency Property insurance for the manufacturing plant Bill Johnson (sales Payroll check payment to manager) sales manager Electricity for manufacturing plant Xcel Energy Winona Printing Price lists for salespeople Jim Kaiser (sales Sales commissions representative) Dave Thill (plant Payroll check plant manager payment to manager) Payroll check - payment to Dana Schultz (kayak assembler) kayak assembler Bagging film used when kayaks discarded after use. Composite One are assembled; it is Shop supplies brooms, paper towels, etc. Fastenal Polyethylene powder which is the main ingredient for the rotational molded kayaks Ravago Property taxes on manufacturing plant Winona County Kevlar kayaks fabric for composite North American Composites Waste Trash disposal for the company office building Journal entry to record |depreciation of manufacturing equipment Management None CD1 -Excel Tutorial Mike Cichanowski founded Wenonah Canoe and later purchased Current designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes from the canoe company's headquarters in Winona, Minnesota Current Designs makes kayaks using two different processes. (See www.cdkayak.com/craftsmanship/index.php for the details of each method.) The rotational molding process uses high temperature to melt polyethylene powder in a closed rotating metal mold to produce a complete kayak hull and deck in a single piece. These kayaks are less labor-intensive and less expensive for the company to produce and sell. Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as the composite process). Layers of fiberglass high-pressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce strength of the finished kayak. These kayaks require a great deal of skilled labor as each boat is individually finished. The or Kevlar are carefully placed by hand in a mold and are bonded with resin. Then, a exquisite finish of the vacuum-bagged composite kayaks gave rise to Current Designs' tag line, "A work of art, made for life." Current Designs has the fol lowing managers: Mike Cichanowski, CEO Diane Buswell, Controller Deb Welch, Purchasing Manager Bill Johnson, Sales Manager Dave Thill, Kayak Plant Manager Rick Thrune, Production Manager for Composite Kayaks Instructions (a) What are the primary information needs of each manager? (b) Name one special-purpose management accounting report that could be designed for each manager: Include the name of the report, the information it would contain, and how frequently it should be issued. (c) When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the following items. Classify each item as a product cost or a period cost. If an item is a product cost, note if it is a didrect materials, direct labor, or manufacturing overhead item. What are the primary information needs of each manager? a Response: (b) Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued rt frequency Name of report Manager Mike Cichanowski Report content Diane Buswell Deb Welch Bill Johnson Dave Thill Rick Thrune (c) When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the following items. Classify each item as a overhead item by placing an "X" in the appropriate box below. product cost or a period cost. If a cost is a product cost, note if it is a direct materials, direct labor, or manufacturing Product Costs Mfg. Direct Direct Period Materials Payee Purpose Labor Overhead Costs Winona Agency Property insurance for the manufacturing plant Bill Johnson (sales Payroll check payment to manager) sales manager Electricity for manufacturing plant Xcel Energy Winona Printing Price lists for salespeople Jim Kaiser (sales Sales commissions representative) Dave Thill (plant Payroll check plant manager payment to manager) Payroll check - payment to Dana Schultz (kayak assembler) kayak assembler Bagging film used when kayaks discarded after use. Composite One are assembled; it is Shop supplies brooms, paper towels, etc. Fastenal Polyethylene powder which is the main ingredient for the rotational molded kayaks Ravago Property taxes on manufacturing plant Winona County Kevlar kayaks fabric for composite North American Composites Waste Trash disposal for the company office building Journal entry to record |depreciation of manufacturing equipment Management None
