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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