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ACCT_346_Project_-_Bravo_Baking_Company_temp_file.xlsx (35.67 KB)
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Factory Supervisor SalariesRent for Executive OfficesSales CommissionsUtilities used in the factoryFlour used in baking breadAdvertising costsDelivery truck costsPaper wrappers for breadDepreciation on bake ovensBakers wagesEggs, salt, water used for bakingInterest on bank loanThe company has experienced a good market demand for its high protein, low carbohydrate product called "Hi-Lo"Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's customers, the local retailers, have been asking for more specialty breads from the company. The decision to expand will be made in the coming weeks.Bravo Baking Company began operations in May of 2010 with the production and sales of speciality breads.Table ATable BTable CBeginning Inventory MaterialsBeginning Work in Process Ending Inventory MaterialsInventory PurchasesEnding Work in ProcessMaterials used in baking breadOther Overhead costsCost of Goods Manufactured ScheduleBeginning Work In ProcessMaterialsPlus: PurchasesMaterials AvailableLess: Ending Inventory MaterialsMaterials UsedDirect LaborOverheadFactory RentUtilities used in FactoryTotal OverheadTotal Manufacturing CostsTotal Work in ProcessLess: Ending Work in ProcessCost of Goods Manufactured Rent for FactoryBeginning Finished Goods InventoryEnding Finished Goods InventoryCost of Goods Sold ScheduleGoods Available for SaleLess: Ending Finished Goods InventoryProductFactory InsuranceCleaning Bake OvensInsurance on FactorySmall amounts of salt usedEggs used for bakingEnter either "Direct" or "Indirect"Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values in the Green shaded cells. VariableFixedUnits producedTotal CostsDelivery truck depreciationUsing the costs from Table A computeB) Break-even sales dollarsC) Contribution MarginPrice Charged per unitD) Contribution Margin Ratio (%)Part II Complete the following requirements 1) What is the margin of safety in Dollars? 2) What is the margin of safety percentage?B) What is the total revenue from A above?C) If Bravo actually sells 8,000 units Total CorrectA) If Bravo requires a profit of $5,000 how many units must it sell?A) Breakeven units (rounded to 2 decimal places)Part I Enter your solution in the green cells for each of the following: Hint: use spreadsheet formulas to compute your answers Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below.RevenuesContribution MarginVariable product costsVariable Selling & Administrative costsFixed Product CostsFixed Selling and Administrative CostsAllocated Common CostsNet IncomeHi-LoWhole GrainFruit & NutsTotalPrepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.What woud you advise Bravo to do?If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO 4)(TCO 2)(TCO 7)Cost of new refrigeration unitAnnual electricity savingsAdditional annual maintenance costsAmount collected from disposal of unit Net present value Cash Flow PV Factors PV Amountsexpected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost.Use the format below to complete the NPV computations:10 points30 points40 PointsUsing the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.TCO 9ACCT 346 Weekly Assignments: Complete the assigned Tab each week.In each worksheet there are several Green colored cells. These cells must be filled in with your response.Enter either "Product" or "Period"For Tables A : From the list below, identify if the cost item is a "Product Cost" or "Period Cost" by typing "Product" or "Period" in the appropriate box.For Table B: From the list below, identify if the cost item is a "Direct Cost" or "Indirect Cost" by typing "Direct" or "Indirect" in the appropriate box.Student NameRequired: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.Standard Cost per unitRequired:Part a. Compute the material price and quantity variance.Material Price Variance == (-) *=Fav/UnfMaterial Quantity Variance =.5 lbsCost /UnitAmount/Unit.25 hrsStandard CostDuring the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo Material Cost (Ingredients) (.5 lbs)Direct Labor( .25 hrs * $9/hr)Fav/Unf >Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it is Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?PointsComplete only the Green cells. Values in Red are from the schedule above. PointsTCO 10Labor Rate Variance =Labor Efficiency Variance =(Note: Use PV Tables on pages 342 and 343. Also, be sure to show costs as negative values)The new unit has a larger capacity and Bravo estimates it can produce and sell an more bread each year. From these additional salesthe after tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year.After tax cash flowpurchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998Due Points AvailablePoints EarnedWeek 1Week 2Week 3Week 5Week 6Week 7Tab1) Product vs. Period Costs Tab 2) Cost of Goods Manufactured Schedule Tab 3) Break Even AnalysisTab 4) Incremental Analysis Tab 5) Capital Budgeting Tab 6) Variance Analysis UnfFavfav
ACCT-346 Course Project - Bravo Baking Company

ACCT-346 Course Project - Bravo Baking Company

Question # 00001119 Posted By: mac123 Updated on: 09/15/2013 01:41 PM Due on: 09/17/2013
Subject Accounting Topic Accounting Tutorials:
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This course has a six-part project with deliverables due in six of the eight weeks.

The course project takes a new company through hypothetical scenarios to reinforce the TCOs. By using a single entity, in a variety of business situations, you will see the practical application of a number of managerial accounting concepts taught in this course.

You will have access to an interactive Excel Template in Doc Sharing to complete your work in proper format. Each week's Assignment page will tell you which portion of the template you need to complete for that week.

You will have Dropbox deliverables in Weeks 1, 2, 3, 5, 6, and 7. Point values do vary in that Week 1 is worth 10 points, Week 2 is worth 30 points, and the remaining Weeks (3, 5, 6, and 7) are 40 points apiece.

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  1. mac123
    Tutorial # 00000991 Posted By: mac123 Posted on: 09/15/2013 01:46 PM
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