need help project

ord File Edit View Insert Format Tools Table Window Help AutoSave & s Insert Draw Design Calibri (Bo... 12 B o x u b . Spring 2020 COBU 202-03 Fir... - Saved to my MacQ Layout References Mallings Tell me Share Comment AA AA A X A A Paragraph Styles Dietate their cakes had grown to the point where they could no longer use their kitchens as their "bakery They rented a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large over mingbins, and prep/decorating area. The owner made all the conversions for the bakery. They currently sell to individuals, area local stores, and event centers for parties/weddings. To get their growing business off the ground they hired a supervisor and two wage employees who work as orders are received. The rest of their payroll includes a financial accountant and one office staff who prepare intoices and does other office duties. They have also hired a sales person, but the sales person is paid a salary and not paid based on the number of cakes sold. Of the store front they have rented, 80% is used as the bakery and 20% is used as office space Your assignment is twofold: 1. They have asked your team to prepare managerial accounting data of the current operation. They know the amount of ingredients in each cake but do not know how much labor to add to the cost and the amount of overhead to allocate to each cake. The accountant they have hired is good at preparing financial statements they need to give to the bank and prepare and payroll but is not managerial account and is not able to help They need to know the cost per cake in order to be able to calculate the cost of goods sold. A list of the calculations they would like for you to prepare for them, as well as information concerning period's operation is on the following page 2. Michelle and Vishaya are thinking of expanding their operations. They want to b enewbery that willow them to expand the operation The new building will allow them to add more ovens, larger prep and decoration stations, and be able to open a retail store in the front of the building A piece of land is available dose to Fort Lee which will give them greater access to military and civilian personnel. They want your team to determine the feasibaty of this new venture. The needed calculations and relevant data are on the following pages ent t you thos Michelle and Vishay need to know the cost per cake so they can be sure they are changing enough for each cake. They also need this to calculate the cost of goods sold. They feel that direct labor hour is the best cost driver for locating manufacturing overhead. They pay their wage employees $15.00 per hour. Due to the type of production that they have they have b e coming the best congtem. Here is the estimated data for 2020 Type of cake Expected Annual sales Selling Price per cake Raw Direct ingredient Labor couper Hour pe ter wedding 772 words English (United States) O Focus 100% ne Valools Table Window Help AutoSave OFF A S U GE - Spring 2020 COBU 202-03 Fir - Saved to my MacG Insert Draw Design Layout References Mailings Tell me Share Comm Calibri (Bo. 12 AA AB A Ev Ay B IV - X * AUL A Paragraph Styles Dictate Sensitivity we Tosk 1 Michelle and Vishaylaneed to know the cost per cake so they can be sure they are charging enough for each cake. They also need this to calculate the cost of goods sold. They feel that direct labor hour is the best cost driver for allocating manufacture overhead. They pay their wage employees $15.00 per hour. Due to the type of production that they have, they believe job order costing is the best costing system. Here is the estimated data for 2020: Type of cake Expected Annual sales Selling Price per cake Rann Direct Ingredient Labor cost per Hour per 1 ter wedding cake 2 ter wedding cake 3ber wedding cake Large sheet cake T Expense Total direct materials Total direct labor Total factory read Selling Cos Administrative Costs Total Costs Estimated assalam 50.00 $191.700.00 552.900.00 $17.500.00 $100,700.00 546545000 ent our pc your ithout Variable verses and Cuts Total Variable Cous Total Fed Costs Total costs $110,450.00 Requirements: 1) Calculate the cost per cake 2) Create a budgeted Traditional income Statement and a Contribution Income Statement 3) Calculate the breakeven point in dollars 22 words English (United States) Focus RODI N U Insert Draw Design Layout Calibri (Bo... 12A A BIU XX A . References Aa A R YA Spring 2020 COBU 202-03 Fir... - Saved to my Mac Mailings Tell me Share Com Alu Paragraph Styles Dictate Sensitivity Variable verses Feed Costs Total Variable Costs Total Fixed Costs Total costs $310.450.00 $155.000.00 $465 450.00 Requirements: 1) Calculate the cost per cake 2) Create a budgeted Traditional Income Statement and a Contribution Income Statement 3) Calculate the breakeven point in dollars 4) Calculate a target profit in dollars for a profit of $100,000 Task 2 They believe it will cost them $225,000 to purchase the land near Fort Lee and to build a bakery and storefront. Your task is: 1) Calculate the Return on investment if the expected increase in Operating income, due to opening the new location near Ft. Lee, is $30,000 2) Assuming what was stated in 1), calculate the Asset Turnover Rate and Profit Margin if the expected Sales also increased to $425,000 3) Assuming what is stated in 1) and 2), calculate the Residual income if the required rate of return is 10% Prepare a 3 pare paper that includes your recommendations and calculations. Of those 3 pages, 2 pages should be text and 1 page can be graphs and charts. The paper is a professional presentation to Michelle and Vishayla where you will explainin layman's terms how you calculated cost per unit breakeven, target profit, ROI, and residual income. As far as the recommendations, explain what you would do to with the company or certain aspects of the company given what you calculate "Your grade will be calculated as follows: 60% Accuracy of calculations Clarity of findings 772 words English (United States) apr 2020...DOC Focus - ord File Edit View Insert Format Tools Table Window Help AutoSave & s Insert Draw Design Calibri (Bo... 12 B o x u b . Spring 2020 COBU 202-03 Fir... - Saved to my MacQ Layout References Mallings Tell me Share Comment AA AA A X A A Paragraph Styles Dietate their cakes had grown to the point where they could no longer use their kitchens as their "bakery They rented a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large over mingbins, and prep/decorating area. The owner made all the conversions for the bakery. They currently sell to individuals, area local stores, and event centers for parties/weddings. To get their growing business off the ground they hired a supervisor and two wage employees who work as orders are received. The rest of their payroll includes a financial accountant and one office staff who prepare intoices and does other office duties. They have also hired a sales person, but the sales person is paid a salary and not paid based on the number of cakes sold. Of the store front they have rented, 80% is used as the bakery and 20% is used as office space Your assignment is twofold: 1. They have asked your team to prepare managerial accounting data of the current operation. They know the amount of ingredients in each cake but do not know how much labor to add to the cost and the amount of overhead to allocate to each cake. The accountant they have hired is good at preparing financial statements they need to give to the bank and prepare and payroll but is not managerial account and is not able to help They need to know the cost per cake in order to be able to calculate the cost of goods sold. A list of the calculations they would like for you to prepare for them, as well as information concerning period's operation is on the following page 2. Michelle and Vishaya are thinking of expanding their operations. They want to b enewbery that willow them to expand the operation The new building will allow them to add more ovens, larger prep and decoration stations, and be able to open a retail store in the front of the building A piece of land is available dose to Fort Lee which will give them greater access to military and civilian personnel. They want your team to determine the feasibaty of this new venture. The needed calculations and relevant data are on the following pages ent t you thos Michelle and Vishay need to know the cost per cake so they can be sure they are changing enough for each cake. They also need this to calculate the cost of goods sold. They feel that direct labor hour is the best cost driver for locating manufacturing overhead. They pay their wage employees $15.00 per hour. Due to the type of production that they have they have b e coming the best congtem. Here is the estimated data for 2020 Type of cake Expected Annual sales Selling Price per cake Raw Direct ingredient Labor couper Hour pe ter wedding 772 words English (United States) O Focus 100% ne Valools Table Window Help AutoSave OFF A S U GE - Spring 2020 COBU 202-03 Fir - Saved to my MacG Insert Draw Design Layout References Mailings Tell me Share Comm Calibri (Bo. 12 AA AB A Ev Ay B IV - X * AUL A Paragraph Styles Dictate Sensitivity we Tosk 1 Michelle and Vishaylaneed to know the cost per cake so they can be sure they are charging enough for each cake. They also need this to calculate the cost of goods sold. They feel that direct labor hour is the best cost driver for allocating manufacture overhead. They pay their wage employees $15.00 per hour. Due to the type of production that they have, they believe job order costing is the best costing system. Here is the estimated data for 2020: Type of cake Expected Annual sales Selling Price per cake Rann Direct Ingredient Labor cost per Hour per 1 ter wedding cake 2 ter wedding cake 3ber wedding cake Large sheet cake T Expense Total direct materials Total direct labor Total factory read Selling Cos Administrative Costs Total Costs Estimated assalam 50.00 $191.700.00 552.900.00 $17.500.00 $100,700.00 546545000 ent our pc your ithout Variable verses and Cuts Total Variable Cous Total Fed Costs Total costs $110,450.00 Requirements: 1) Calculate the cost per cake 2) Create a budgeted Traditional income Statement and a Contribution Income Statement 3) Calculate the breakeven point in dollars 22 words English (United States) Focus RODI N U Insert Draw Design Layout Calibri (Bo... 12A A BIU XX A . References Aa A R YA Spring 2020 COBU 202-03 Fir... - Saved to my Mac Mailings Tell me Share Com Alu Paragraph Styles Dictate Sensitivity Variable verses Feed Costs Total Variable Costs Total Fixed Costs Total costs $310.450.00 $155.000.00 $465 450.00 Requirements: 1) Calculate the cost per cake 2) Create a budgeted Traditional Income Statement and a Contribution Income Statement 3) Calculate the breakeven point in dollars 4) Calculate a target profit in dollars for a profit of $100,000 Task 2 They believe it will cost them $225,000 to purchase the land near Fort Lee and to build a bakery and storefront. Your task is: 1) Calculate the Return on investment if the expected increase in Operating income, due to opening the new location near Ft. Lee, is $30,000 2) Assuming what was stated in 1), calculate the Asset Turnover Rate and Profit Margin if the expected Sales also increased to $425,000 3) Assuming what is stated in 1) and 2), calculate the Residual income if the required rate of return is 10% Prepare a 3 pare paper that includes your recommendations and calculations. Of those 3 pages, 2 pages should be text and 1 page can be graphs and charts. The paper is a professional presentation to Michelle and Vishayla where you will explainin layman's terms how you calculated cost per unit breakeven, target profit, ROI, and residual income. As far as the recommendations, explain what you would do to with the company or certain aspects of the company given what you calculate "Your grade will be calculated as follows: 60% Accuracy of calculations Clarity of findings 772 words English (United States) apr 2020...DOC Focus