ACC 202 Final Project Part I and Part II

ACC 202 Final Project Part I Guidelines and Rubric

Overview

To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a frontline

employee, at some time you will be affected by a budget.

Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the

effectiveness of an organization’s operations. The process will also help you determine the reasons operations do not always go as planned and make decisions

on changes that might need to be made to make the organization, or just your own department, more efficient.

In the Budget Workbook, you will use course-provided information to 1) prepare an operating budget, 2) compare actual operational results to the budgets to

determine financial strengths and weaknesses, and 3) make decisions about operational changes that need to be made.

To do this, you will prepare an operating budget at the beginning for your company. Your budget will include different products with different costing methods,

labor, overhead, and sales projections based on a desired profit margin. You will compare your budget to actual results to determine and analyze variances. This

variance analysis will allow you to make decisions about changes that should be made to make your organization more efficient.

This assessment addresses the following course outcomes:

? ACC-202-01: Communicate budget planning to internal stakeholders for strategic planning

? ACC-202-02: Apply costing methods to production for supporting budget planning and decision making

Prompt

You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the

results of operations to determine if changes need to be made to make the company more efficient.

You will be preparing a budget for the quarter July through September 2014. You are provided the following information. The budgeted balance sheet at June

30, 2014, is:

Peyton Approved

Budgeted Balance Sheet

30-Jun-15

ASSETS

Cash $42,000

Accounts receivable 259,900

Raw materials inventory 35,650

Finished goods inventory 241,080

Total current assets 578,630

Equipment $720,000

Less accumulated depreciation 240,000 480,000

Total assets $1,058,630

LIABILITIES AND EQUITY

Accounts payable $63,400

Short-term notes payable 24,000

Taxes payable 10,000

Total current liabilities 97,400

Long-term note payable 300,000

Total Liabilities 397,400

Common stock $600,000

Retained earnings 61,230

Total stockholders’ equity 661,230

Total liabilities and equity $1,058,630

1. Sales were 20,000 units in June 2014. Forecasted sales in units are as follows: July, 19,000; August, 21,000; September, 20,000; October, 24,000. The

product’s selling price is $17.50 per unit and its total product cost is $14.35 per unit.

2. The June 30 finished goods inventory is 14,700 units.

3. Going forward, company policy calls for a given month’s ending finished goods inventory to equal 70% of the next month’s expected unit sales.

4. The June 30 raw materials inventory is 4,375 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw materials cost $8 per unit.

Each finished unit requires 0.50 units of raw materials. Company policy calls for a given month’s ending raw materials inventory to equal 20% of the next

month’s materials requirements.

5. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour.

6. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $1.35 per direct labor hour. Depreciation of $20,000 per

month is treated as fixed factory overhead.

7. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable.

8. Sales representatives’ commissions are 10% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $3,750 per month.

9. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none

are collected in the month of the sale).

10. All raw materials purchases are on credit, and no payables arise from any other transactions. One month’s raw materials purchases are fully paid in the

next month.

11. Dividends of $20,000 are to be declared and paid in August.

12. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October.

13. Equipment purchases of $100,000 are budgeted for the last day of September.

The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum.

Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess

will be applied to repaying the short-term notes payable balance.

Specifically, the following critical elements must be addressed:

1. Operating Budget

Create an operating budget

a) Prepare a sales budget. Ensure accuracy of data. [ACC-202-02]

b) Annotate your sales budget line items. Why have you made the choices you have made? What information informed your decision for each

item? [ACC-202-01]

c) Prepare a production budget. Ensure the accuracy of your data. [ACC-202-02]

d) Annotate your production budget line items. Why have you made the choices you have made? What information informed your decision for

each item? [ACC-202-01]

e) Prepare a manufacturing budget. Ensure the accuracy of your data. [ACC-202-02]

f) Annotate your manufacturing budget line items. Why have you made the choices you have made? What information informed your decision for

each item? [ACC-202-01]

g) Prepare a selling expense budget. Ensure the accuracy of your data. [ACC-202-02]

h) Annotate your selling expense budget line items. Why have you made the choices you have made? What information informed your decision for

each item? [ACC-202-01]

i) Prepare a general and administrative expense budget using appropriate costing methods. [ACC-202-02]

j) Annotate your line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202-

01]

2. Budget Variance Analysis

The actual quantity of material used was 31,000 with an actual cost of $7.75 per unit. The actual labor hours were 33,000 with an actual rate per hour of

$15.

a) Develop a variance analysis including a budget variance performance report and appropriate variances for materials, labor, and overhead. [ACC-

202-01]

b) Annotate each variance. What does the variance tell you? [ACC-202-01]

c) What needs to be investigated to determine the reason for the variance? Why? [ACC-202-01]

Final Project Part I Rubric

Guidelines for Submission: Complete the Final Project Part I Student Worksheet and the Budget Variance Student Worksheet. Your annotation and analysis

should be 5–7 pages, double-spaced, with one-inch margins, 12-point Times New Roman font, and APA format.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,

review these instructions.

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Operating Budget:

Sales Budget

[ACC-202-02]

Prepares sales budget, and data

is accurate

(100%
)

Prepares sales budget, but it

contains some errors

(55%)

Does not prepare a sales budget

(0%)

7.5

Operating Budget:

Annotate Sales

Budget

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with specific evidence

(100%)

Annotates line items, and

justifies decisions that were

made and what informed them

(85%)

Annotates line items, but does

not identify decisions that were

made and what informed them

(55%)

Does not annotate line items

(0%)

7.5

Operating Budget:

Production Budget

[ACC-202-02]

Prepares production budget, and

data is accurate

(100%)

Prepares production budget, but

it contains some errors

(55%)

Does not prepare a production

budget

(0%)

7.5

Operating Budget:

Annotate Production

Budget

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with specific evidence

(100%)

Annotates line items and justifies

decisions that were made and

what informed them

(85%)

Annotates line items, but does

not identify decisions that were

made and what informed them

(55%)

Does annotate line items

(0%)

7.5

Operating Budget:

Manufacturing

Budget

[ACC-202-02]

Prepares manufacturing budget,

and data is accurate

(100%)

Prepares manufacturing budget,

but it contains some errors

(55%)

Does not prepare a

manufacturing budget

(0%)

7.5

Operating Budget:

Annotate

Manufacturing

Budget

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with specific evidence

(100%)

Annotates line items and justifies

decisions that were made and

what informed them

(85%)

Annotates line items, but does

not identify decisions that were

made and what informed them

(55%)

Does not annotate line items

(0%)

7.5

Operating Budget:

Selling Expense

Budget

[ACC-202-02]

Prepares selling expense budget,

and data is accurate

(100%)

Prepares selling expense budget,

but it contains some errors

(55%)

Does not prepare a selling

expense budget

(0%)

7.5

Operating Budget:

Annotate Selling

Expense Budget

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with specific evidence

(100%)

Annotates line items and justifies

decisions that were made and

what informed them

(85%)

Annotates line items, but does

not identify decisions that were

made and what informed them

(55%)

Does not annotate line items

(0%)

7.5

Operating Budget:

General and

Administrative

Expense Budget

[ACC-202-02]

Prepares general and

administrative expense budget

and utilizes appropriate costing

methods

(100%)

Prepares general and

administrative expense budget,

but does not utilize appropriate

costing methods

(55%)

Does not prepare general and

administrative expense budget

(0%)

7.5

Operating Budget:

Annotate

Administrative

Expense Budget

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with specific evidence

(100%)

Annotates line items and justifies

decisions that were made and

what informed them

(85%)

Annotates line items, but does

not identify decisions that were

made and what informed them

(55%)

Does not annotate line items

(0%)

7.5

Budget Variance

Analysis: Variance

Analysis

[ACC-202-01]

Develops a variance analysis that

includes a budget variance

performance report and

appropriate variances for

materials, labor, and overhead

(100%)

Develops a variance analysis that

includes a budget variance

report, but variances for

materials, labor, and overhead

are not appropriate

(55%)

Does not develop a variance

analysis

(0%)

7.5

Budget Variance

Analysis: Annotate

[ACC-202-01]

Meets “Proficient” criteria and

demonstrates awareness of the

role of variances

(100%)

Annotates each variance and

determines what variances

inform

(85%)

Annotates each variance, but

does not determine what

variances inform

(55%)

Does not annotate each variance

(0%)

7.5

Budget Variance:

Investigation

[ACC-202-01]

Meets “Proficient” criteria, and

justification is well supported

with examples

(100%)

Identifies what needs to be

investigated to determine the

reason for the variance and

justifies response

(85%)

Identifies what needs to be

investigated to determine the

reason for the variance, but

response lacks justification

(55%)

Does not identify what needs to

be investigated to determine

reason for variance

(0%)

7.5

Articulation of

Response

Submission is free of errors

related to citations, grammar,

spelling, syntax, and organization

and is presented in a

professional and easy-to-read

format

(100%)

Submission has no major errors

related to citations, grammar,

spelling, syntax, or organization

(85%)

Submission has major errors

related to citations, grammar,

spelling, syntax, or organization

that negatively impact

readability and articulation of

main ideas

(55%)

Submission has critical errors

related to citations, grammar,

spelling, syntax, or organization

that prevent understanding of

ideas

(0%)

2.5

Earned Total 100%

ACC 202 Final Project Part II Guidelines and Rubric

Overview

To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a frontline

employee, at some time you will be affected by a budget.

Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the

effectiveness of an organization’s operations. The process will also help you determine the reasons operations do not always go as planned and make decisions

on changes that might need to be made to make the organization, or just your own department, more efficient.

In the budget report, you will use course-provided information to communicate the results of operations to internal parties.

This assessment addresses the following course outcomes:

? Communicate budget planning to internal stakeholders for strategic planning

? Apply costing methods to production for supporting budget planning and decision making

? Analyze financial information in identifying opportunities for operational efficiencies

? Apply ethics within the accounting decision-making process for supporting responsible business activities

Prompt

You are a manager for a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the results of

operations to determine if changes need to be made to make the company more efficient.

Using the workbooks you created for Final Project Part I, you will make decisions about possible changes that should be made to make the company more

efficient. You will look at the possibility of making some components of on
e product instead of buying them, and you will determine how to evaluate the

company as a whole and managers in particular. You will create a report detailing your findings.

Specifically, the following critical elements must be addressed:

Prepare a Report

a) Discuss the initial budget process, the variances, and potential reasons for the variances.

b) Determine changes you think the company should make based on the variance analysis. What will the changes accomplish?

c) What are the ethical considerations of the changes you have selected? Why are you recommending these particular changes?

d) Decide whether you continue buying a particular component of one of your products or making the product in-house. Develop a recommendation on

the “make” or “buy” decision for the given component. What factors did you consider?

e) What are the ethical considerations of your decision? What implications could this decision have?

f) Describe how your decision was reached. How will this impact the efficiencies of your operation?

g) What suggestions would you make for nonfinancial performance measures that the company should adopt? What are the pros and cons of each?

h) What are the ethical considerations of your suggestions? Explain the significance of each.

Final Project Part II Rubric

Guidelines for Submission: Your budget report should be 1–2 pages, double-spaced, with one-inch margins, 12-point Times New Roman font, and APA format.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,

review these instructions.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Prepare a Report:

Budget Process

Meets “Proficient” criteria, and

reasoning demonstrates

awareness of potential business

situations

Discusses the initial budget

process and the variances and

describes potential reasons for

variances

Discusses the initial budget

process and the variances, but

does not describe potential

reasons for variances

Does not describe initial budget

process

11.5

Prepare a Memo:

Changes

Meets “Proficient” criteria and

demonstrates awareness of

implications of making changes

Determines changes the

company should make based on

variance analysis and identifies

what will be accomplished by

making these changes

Determines changes the

company should make based on

variance analysis, but does not

identify what will be

accomplished by making these

changes

Does not determine changes the

company should make

11.5

Prepare a Report:

Ethical

Considerations

Meets “Proficient” criteria, and

justification is well supported

with examples

Identifies ethical considerations

of changes recommended and

justifies recommendations

Identifies ethical considerations

of changes recommended, but

does not justify

recommendations

Does not identify ethical

considerations

11.5

Prepare a Report:

Recommendation

Meets “Proficient” criteria, and

recommendation is supported

with evidence

Develops recommendation and

describes factors that were taken

into consideration

Develops recommendation, but

does not describe factors that

were taken into consideration

Does not develop a

recommendation

11.5

Prepare a Report:

Implications

Meets “Proficient” criteria and

demonstrates a nuanced

understanding of the relationship

between ethical views and

implications

Identifies ethical considerations

and implications of decision

Identifies ethical considerations

or implications of decision, but

not both

Does not identify ethical

consideration or implications of

decision

11.5

Prepare a Report:

Impact

Meets “Proficient” criteria and

demonstrates awareness of

business operations

Describes how decision was

reached and how it will impact

the efficiencies of operation

Describes how decision was

reached, but does not address

how it will impact efficiencies of

operation

Does not describe how decision

was reached

11.5

Prepare a Report:

Suggestions

Meets “Proficient” criteria, and

suggestions incorporate a wellrounded

view of the business

Identifies suggestions for

nonfinancial performance

measures the company should

adopt and lists the pros and cons

of each

Identifies suggestions for

nonfinancial performance

measures the company should

adopt, but does not list the pros

and cons of each

Does not identify suggestions for

nonfinancial performance

measures the company should

adopt

11.5

Prepare a Report:

Considerations

Meets “Proficient” criteria, and

explanation is exceptionally clear

and contextualized

Identifies the ethical

considerations of suggestions

and explains the significance of

each

Identifies the ethical

considerations of suggestions,

but does not explain the

significance of each

Does not identify the ethical

considerations of suggestions

11.5

Articulation of

Response

Submission is free of errors

related to citations, grammar,

spelling, syntax, and organization

and is presented in a professional

and easy-to-read format

Submission has no major errors

related to citations, grammar,

spelling, syntax, or organization

Submission has major errors

related to citations, grammar,

spelling, syntax, or organization

that negatively impact readability

and articulation of main ideas

Submission has critical errors

related to citations, grammar,

spelling, syntax, or organization

that prevent understanding of

ideas

8

Earned Total 100%

PLEASE ORDER NOW

[contact-form-7 id=”232″ title=”Contact form 1″]

Order This Solution

Ask your homework question

 

INDIVIDUAL APPROACH:
Chat with every writer who applies to your request, and view their skills and portfolio. Make the choice that’s right for you.
MANAGE YOUR ORDER:
Monitor progress and see any changes made. Have full control over every phase of the process.
COMMUNICATE:
Ask your writer questions and provide your ideas about your paper. Produce the exact result that you want.
ENJOY THE OUTCOME:
Get everything done on time with high quality. Writing papers is much simpler with us.

Ask your homework question

 

© 2017 theacademicessays. All Rights Reserved. Design & Developed by theacademicessays.
Loading...