Question
Investor Report for [Company Name] Introduction [Outline your companys business and your vision for its future.] [Introduce the company and its business. What is your
Investor Report for [Company Name]
Introduction
[Outline your companys business and your vision for its future.]
[Introduce the company and its business. What is your vision for the future of the business? What do you hope to achieve? Where do you see the company in five years or ten?]
Purpose
[Explain the purpose of the report and what you hope to convey about the company and its financials.]
[What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important.]
Methods and Approach
[Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc., and explain how these methods support the mission and vision of the company.]
[Briefly describe how your report and the data it represents adheres to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical?]
Financial Strategy
[In this section, review your original business plan and costing strategies. Remove this note before you submit your paper.]
Costing System
[Outline why the job order costing system works best for your business. Explain in detail the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense.]
Selling Prices
[List the selling price you chose for each product.]
[Explain and defend the selling prices you established for each product. Why did you choose these prices? Be sure to reference your cost-volume-profit analysis in your defense]
Contribution Margin
COLLARS | LEASHES | HARNESSES | ||||
Sales Price per Unit | $ 20.00 | $ 22.00 | $ 25.00 | |||
Variable Cost per Unit | $ 9.10 | 12.10 | 14.60 | |||
Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
[Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your cost-volume-profit analysis in your defense.]
Target Profits
[Copy and paste the completed table from the Break-Even Analysis tab of your Project Workbook.]
[Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.]
Financial Statements
]
Statement of Cost of Goods Sold
Milestone Three - Statement of Cost of Goods Sold | |||
Beginning Work in Process Inventory | $ - | ||
Direct Materials: | |||
Materials: Beginning | 0 | ||
Add: Purchases for month of January | $ 20,000 | ||
- | |||
Materials available for use | 20,000 | ||
Deduct: Ending materials | (4,000) | ||
Materials Used | 16,000 | ||
Direct Labor | 8,493 | ||
Overhead | 3,765 | ||
Total Costs | $ 28,258 | ||
Deduct: Ending Work in Process Inventory | 0 | ||
Cost of Goods Sold | $ 28,258 | ||
[Compare the actual cost of goods sold over the last month and evaluate the companys performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.]
Income Statement
Milestone Three - Income Statement | |||
Revenue: | |||
Collars | $ 13,200 | ||
Leashes | 12,320 | ||
Harnesses | 12,500 | ||
Total Revenue: | $ 38,020 | ||
Cost of goods sold | 28,258 | ||
Gross profit | $ 9,762 | ||
Expenses: | |||
General and administrative salaries | $ 1,950 | ||
Office supplies | 200 | ||
Other business equipment | 150 | $ 2,300.00 | |
Total Expenses | $ 5,715.00 | ||
Net Income/Loss | $ 4,047.00 | ||
[Based on your income statement, logically interpret the businesss performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.]
Variances
Milestone Three - Variance Analysis | |||||
Data for Variance Analysis: | |||||
Budgeted (Standard) Hours/Qty | Budgeted (Standard) Rate | Actual Hours/Qty | Actual Rate | ||
Labor | 160 | $ 16.00 | 180 | $ 16.50 | |
Materials | 660 | $ 9.10 | 720 | $ 10.00 | |
Variances for Collar Sales | |||||
Variance | Favorable/ Unfavorable | ||||
Direct Labor Time Variance | |||||
(Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | |||
Direct Labor Rate Variance | |||||
(Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | |||
Direct Materials Quantity/Efficiency Variance | |||||
(Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | |||
Direct Materials Price Variance | |||||
(Actual Price - Standard Price) x Actual Quantity | $ 648.00 | Unfavorable | |||
[Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?]
Significance of Variances
[Share a summary of your variance analysis. Were the variances favorable or unfavorable?]
[Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.]
References
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