I have 2 things to ask the first one ( the first attachement ACCASS1)

The facts and figures relating to Irrigation Corporation are as follows. Irrigation Corporation produces plastic garden sprinklers. The company is preparing its budget for 2016. The first step is to plan for the first quarter of that coming year. Irrigation has collected the following information from the managers.

1. Sales:

Sales for November 2014 112,500 units

Sales for December 2014 102,100 units

Expected sales for January 2015 113,000 units

Expected sales for February 2015 112,500 units

Expected sales for March 2015 116,000 units

Expected sales for April 2015 125,000 units

Expected sales for May 2015 137,500 units

Selling price per unit $12

Irrigation likes to keep 10% of next months unit sales in ending inventory. All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2015, totaled $183,780.

1. Direct Materials:

2 pounds of direct materials is needed to produce one unit. Irrigation likes to keep 5% of the materials needed for the next months production in its ending inventory. Raw materials on hand on December 31, 2015, totaled 11,295 pounds.

Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2015, totaled $120,595.

1. Direct Labor

Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour.

1. Manufacturing Overhead

Indirect materials $0.30 per labor hour

Indirect labor $0.50 per labor hour

Utilities $0.45 per labor hour

Maintenance $0.25 per labor hour

Factory supervisors salary $42,000 per month

Factory Depreciation $16,800 per month

Property taxes $ 2,675 per month

Insurance $ 1,200 per month

Repairs $ 1,300 per month

1. Selling and Administrative expenses

Salaries $72,000 per month

Advertising $15,000 per month

Insurance $ 1,400 per month

Office Depreciation $ 2,500 per month

Other fixed costs $ 3,000 per month

6. Other Information

The cash balance on December 31, 2015, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2016.

Dividends are paid each month @ $2.50 per share for 5,000 shares.

The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of $1,000, and the interest rate is 8%. Irrigation borrows on the first day of the month and repays on the last day of the month if possible.

A $500,000 equipment purchase is planned for February 2016.

Instructions:

1. This group project requires the use of EXCEL spreadsheets to prepare various budgets for a manufacturing company.
2. The class is asked to form groups of not more than 4 students and allocate the task among them equitably.
3. All the members of the group must contribute to the effort and share the overall task, equitably.
4. The group should PREPARE the following documents for the first quarter (January, February & March) of 2016 by using a MS EXCEL spreadsheet:

1. Sales Budget
2. Production Budget
3. Direct Materials Purchase Budget
4. Direct Labor Budget
5. Manufacturing Overhead Budget
6. Selling and Administration Budget
7. Schedule of expected cash collections from customers
8. Schedule for expected cash payments for materials purchases
9. A Cash Budget.

1. The MS EXCEL spreadsheet cells should be linked so that change in one cells changes all linked cells.
2. TheMSEXCELspreadsheetshouldbewellformattedtolookpleasingtotheeyeandfitwithintheprintingmargins.

THE 2ND QUESTION ( attachment ACCASS2):

Assignment Information

Alain Bookshop and Caf (ABC) is a large city bookstore that sells books and music CDs and has a caf. ABC operates at capacity and allocates selling, general and administration costs to each product line using the cost of merchandise of each product line. ABC wants to optimize the pricing and cost management of each product line. ABC is wondering if its accounting system is providing it with the best information for making such decisions.

Alain Books and Caf
Product Line Information
For the Year Ended December 31, 2014
	Books	CDs	Caf
Revenues	$3,720,480	$2,315,360	$736,216
Cost of merchandise	$2,656,727	$1,722,311	$556,685
Cost of caf cleaning			$18,250
Number of purchase orders placed	2,800	2,500	2,000
Number of deliveries received	1,400	1,700	1,600
Hours of shelf stocking time	15,000	14,000	10,000
Items sold	124,016	115,768	368,108

ABC incurs the following selling, general and administration costs:

Alain Books and Caf
Selling, General, and Administration Costs
For the Year Ended December 31, 2014
Purchasing department expenses	$474,500
Receiving department expense	$432,400
Shell stocking labour expense	$487,500
Customer support expense (cashiers and floor employees)	$91,184
	$1,485,584

Required

1. Prepare product line and total company income statements, assuming that ABC uses cost of merchandise to allocate all selling, general and administration costs.
2. Identify and explain an improved method for allocating each of the selling, general and administration costs to the three product lines.
3. Prepare product line and total company income statements, using the method you have identified in 2. above to allocate all selling, general and administration costs.
4. Compare your results in 3 above with those in 1 Above.
5. Write a memo to ABC management describing how the improved system you propose might be useful for managing the store.

Note : I found the first question but without answer , So I would like to get the answer for both because the deadline is in tuesday

Thank you

ACC 522: Fall, 2016 MANAGERIAL ACCOUNTING The facts and figures relating to Irrigation Corporation are as follows. Irrigation Corporation produces plastic garden sprinklers. The company is preparing its budget for 2016. The first step is to plan for the first quarter of that coming year. Irrigation has collected the following information from the managers. 1. Sales: Sales for November 2014 Sales for December 2014 Expected sales for January 2015 Expected sales for February 2015 Expected sales for March 2015 Expected sales for April 2015 Expected sales for May 2015 Selling price per unit 112,500 units 102,100 units 113,000 units 112,500 units 116,000 units 125,000 units 137,500 units $12 Irrigation likes to keep 10% of next month's unit sales in ending inventory. All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2015, totaled $183,780. 2. Direct Materials: 2 pounds of direct materials is needed to produce one unit. Irrigation likes to keep 5% of the materials needed for the next month's production in its ending inventory. Raw materials on hand on December 31, 2015, totaled 11,295 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2015, totaled $120,595. 3. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour. 4. Manufacturing Overhead 1 Indirect materials Indirect labor Utilities Maintenance Factory supervisor's salary Factory Depreciation Property taxes Insurance Repairs 5. Selling and Administrative expenses Salaries Advertising Insurance Office Depreciation Other fixed costs 6. $0.30 per labor hour $0.50 per labor hour $0.45 per labor hour $0.25 per labor hour $42,000 per month $16,800 per month $ 2,675 per month $ 1,200 per month $ 1,300 per month $72,000 per month $15,000 per month $ 1,400 per month $ 2,500 per month $ 3,000 per month Other Information The cash balance on December 31, 2015, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2016. Dividends are paid each month @ $2.50 per share for 5,000 shares. The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of $1,000, and the interest rate is 8%. Irrigation borrows on the first day of the month and repays on the last day of the month if possible. A $500,000 equipment purchase is planned for February 2016. Instructions: 1. This group project requires the use of EXCEL spreadsheets to prepare various budgets for a manufacturing company. 2 2. The class is asked to form groups of not more than 4 students and allocate the task among them equitably. 3. All the members of the group must contribute to the effort and share the overall task, equitably. 4. The group should PREPARE the following documents for the first quarter (January, February & March) of 2016 by using a MS EXCEL spreadsheet: (a)Sales Budget (b) Production Budget (c)Direct Materials Purchase Budget (d) Direct Labor Budget (e)Manufacturing Overhead Budget (f) Selling and Administration Budget (g)Schedule of expected cash collections from customers (h) Schedule for expected cash payments for materials purchases (i) A Cash Budget. 5. The MS EXCEL spreadsheet cells should be linked so that change in one cells changes all linked cells. 6. The MS EXCEL spreadsheet should be well formatted to look pleasing to the eye and fit within the printing margins. 3 ACC522 Managerial Accounting Assignment 2 Instructions: 1. Complete the following assignment individually. 2. The due date is 29th September 2016 Assignment Information Alain Bookshop and Caf (ABC) is a large city bookstore that sells books and music CDs and has a caf. ABC operates at capacity and allocates selling, general and administration costs to each product line using the cost of merchandise of each product line. ABC wants to optimize the pricing and cost management of each product line. ABC is wondering if its accounting system is providing it with the best information for making such decisions. Alain Books and Caf Product Line Information For the Year Ended December 31, 2014 Books CDs Caf Revenues $3,720,480 $2,315,360 $736,216 Cost of merchandise $2,656,727 $1,722,311 $556,685 Cost of caf cleaning $18,250 Number of purchase orders placed 2,800 2,500 2,000 Number of deliveries received 1,400 1,700 1,600 Hours of shelf stocking time 15,000 14,000 10,000 Items sold 124,016 115,768 368,108 ABC incurs the following selling, general and administration costs: Alain Books and Caf Selling, General, and Administration Costs For the Year Ended December 31, 2014 Purchasing department expenses Receiving department expense Shell stocking labour expense Customer support expense (cashiers and floor employees) $474,500 $432,400 $487,500 $91,184 $1,485,584 Required 1. Prepare product line and total company income statements, assuming that ABC uses cost of merchandise to allocate all selling, general and administration costs. 2. Identify and explain an improved method for allocating each of the selling, general and administration costs to the three product lines. 3. Prepare product line and total company income statements, using the method you have identified in 2. above to allocate all selling, general and administration costs. 4. Compare your results in 3 above with those in 1 Above. 5. Write a memo to ABC management describing how the improved system you propose might be useful for managing the store