Cookie Business Final Project
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project.
The learning objectives of this project are as follows:
- Apply accounting concepts and standards to the creation of accounting information and reports.
- Analyze accounting information used to make strategic business decisions.
- Apply ethical behavior to accounting-related situations.
- Make business decisions based on analyzing accounting data.
Objective 1: Written Report
Using the TEMPLATE.pdf, prepare a five-page written report (including spreadsheets) be sure to use APA formatting . with at least four scholarly sources. Your report will provide the following information:
Introduction
Part 1: Based on the data presented in the Spreadsheet Template.xlsx in Excel (CM Breakeven tab):
- Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
- Calculate the weighted average CM.
- Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.
Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
- Calculate the value of ending inventory under full or absorption costing.
- Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.
Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order.
Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.
Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
- Calculate the material variances.
- Calculate the labor variances.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
Conclusion and Recommendations
Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.
OBJECTIVE 2: Powerpoint
Cookie Business Final Presentation
Now that you have completed running some calculations for the cookie business , you will present your findings.
The learning objectives of this project allow you to apply accounting concepts and standards to the creation of accounting information and reports.
Using the Objective1: Written Report as a guide, create an ten slide PowerPoint presentation. In this presentation, you want to summarize what you found and discuss how you think these findings will help you make better business decisions. In addition, provide future recommendations for the cookie business based on your report findings.
Your presentation slides should be somewhat simple (incomplete sentences, bullets, etc.) with appropriate graphics or images. You must add content to your presentation (completed sentences) through the notes feature in PowerPoint
Be sure to use APA formatting throughout
1
Title of the Paper Goes Here
Student Name
Institution
Course
Instructor
Date
2
Abstract
The abstract is an overview of the paper, written after completion. Other researchers use the
abstract to determine if your work will be useful to them. The abstract should include the
background, hypothesis or research question, methodology for data collection and analysis, the
findings of your research, and conclusions. It should be between 100–150 words. This is done
when the paper is complete.
3
Title of Paper
Remember this part of the paper is double spaced in APA format.
The Introduction should lead readers into the topic and its importance. Introductions
typically include the overall topic of the paper, the specific focus of the paper within the larger
topic, the main points in the paper, the kind of paper (study, argument, critique, discussion), and
the purpose.
Writing tip: The length of the introduction should be in proportion to the length of the
paper. Also ask yourself, “With my purpose and my audience, how do I engage my readers
best?” In the introduction, you set the tone of the piece, establish your voice, and demonstrate
your writing style; be authentic to your purpose and your audience.
Part 1 Contribution Margin/Breakeven
Embed your spreadsheet for this section here and discuss the results.
Part 2 Full and Variable Costing
Embed your spreadsheet for this section here and discuss the results.
Part 3 Special Order
Embed your spreadsheet for this section here and discuss the results.
Part 4 Internal Rate of Return
Embed your spreadsheet for this section here and discuss the results.
Part 5 Cash Budget
Embed your spreadsheet for this section here and discuss the results.
Part 6 Material and Labor Variance
Embed your spreadsheet for this section here and discuss the results.
4
Conclusions and Recommendations
The conclusion section should summarize for the readers the topics of importance that led
to your final conclusions/analysis regarding this case. Include some specific areas of focus from
your analysis to reinforce your conclusion.
5
References
Include complete references in proper APA format for all of the citations listed in your
paper. Be sure to use the library for the required number of sources. Additional sources can be
used but should be scholarly. Present your references in alphabetical order.
Cookie Business
Actual Total Cost of Direct Materials $225,000
Standard Total Cost of Direct Materials $224,800
Actual Materials Used 30
Standard Materials Used 31
Actual Direct Labor Rate $15.50
Standard Labor Rate $15.00
Actual Hours Worked 45
Standard Hours Worked 40
Amount Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance
Materials Quantity Variance
Calculate Labor Variances:
Labor Rate Variance
Labor Efficiency Variance
