ACCT 346

Student Name
Bravo Baking Company began operations in May of 2010 with the production and sales of specialty
The company has experienced a good market demand for its high protein, low carbohydrate product
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's c
the local retailers, have been asking for more specialty breads from the company. The decision to e
in the coming weeks.

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 resp
Points
Due Available
Tab1) Product vs. Period Costs
Week 1
10
Tab 2) Cost of Goods Manufactured Schedule
Week 2
30
Tab 3) Break Even Analysis
Week 3
40
Tab 4) Incremental Analysis
Week 5
40
Tab 5) Capital Budgeting
Week 6
40
Tab 6) Variance Analysis
Week 7
40
200

ction and sales of specialty breads.
, low carbohydrate product called "Hi-Lo"
roduct, however, Bravo's customers,
ompany. The decision to expand will be made

t be filled in with your response.
Points
Earned
0.00
0.00
0.00
0.00
0.00
0.00
0.00 Total

10 points Table A Flour used in baking bread Factory Supervisor Salaries Bakers wages Rent for Executive Offices Sales Commissions Utilities used in the factory Advertising costs Delivery truck costs Paper wrappers for bread Depreciation on bake ovens Eggs. identify if the cost item is a "Product Cost" or "Period Cost" by typing "Product" or "Period" in the appropriate box.ACCT 346 Student Name For Tables A : From the list below. water used for baking Interest on bank loan Factory Insurance Enter either "Product" or "Period" . salt.

Table B Enter either "Direct" or "Indirect" Flour used in baking bread Factory Supervisor Salaries Bakers wages Factory Insurance Rent for Factory Utilities used in the factory Cleaning Bake Ovens Insurance on Factory Paper wrappers for bread Depreciation on bake ovens Eggs used for baking Small amounts of salt used Factory Maintenance Points 0. identify if the cost item is a "Direct Cost" or "Indirect Cost" by typing "Direct" or "Indirect" in the appropriate box.For Table B: From the list below.00 .

000 8000 4000 26000 2500 1200 7500 6000 7500 Materials Used Direct Labor Overhead Factory Rent Depreciation on bake ovens Utilities used in Factory Other Overhead costs Total Overhead Total Manufacturing Costs Total Work in Process Less: Ending Work in Process Cost of Goods Manufactured . Table C Materials used in baking bread Bakers wages Rent for Executive Offices Sales Commissions Utilities used in the factory Advertising costs Delivery truck costs Depreciation on bake ovens Interest on bank loan Beginning Inventory Materials Beginning Work in Process Ending Inventory Materials Inventory Purchases Ending Work in Process Other Overhead costs Beginning Finished Goods Inventory Ending Finished Goods Inventory Rent for Factory $32.000 36.000 10000 5000 12000 25000 500 250 10.ACCT 346 Student Name Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Green shaded cells.

Goods Available for Sale Less: Ending Finished Goods Inventory Cost of Goods Sold Schedule .

actured Schedule:Bravo had the following costs as of Dec 31. Enter the correct values in the 30 points Cost of Goods Manufactured Schedule Beginning Work In Process Materials Beginning Inventory Materials Plus: Purchases Materials Available Less: Ending Inventory Materials Materials Used Direct Labor Overhead Factory Rent Depreciation on bake ovens Utilities used in Factory Other Overhead costs Total Overhead Total Manufacturing Costs Total Work in Process Less: Ending Work in Process Cost of Goods Manufactured Complete only the Green cells. Cost of Goods Sold Schedule Beginning Finished Goods Inventory Beginning Work In Process $0 Materials Beginning Inventory Materials $0 Plus: Purchases $0 Materials Available $0 Less: Ending Inventory Materials $0 Materials Used $0 Direct Labor $0 Overhead Factory Rent $0 Depreciation on bake ovens $0 Utilities used in Factory $0 Other Overhead costs $0 Total Overhead $0 Total Manufacturing Costs $0 Total Work in Process $0 Less: Ending Work in Process $0 Cost of Goods Manufactured $0 Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again Try Again . 2010. Values in Red are from the schedule above.

Goods Available for Sale Less: Ending Finished Goods Inventory Cost of Goods Sold Schedule Points 0 .

77 $8.27 Price Charged per unit $7.000 Table A Materials used in baking bread Sales Commissions Bakers wages Rent for Executive Offices Factory Supervisor Salaries Utilities used in the factory Advertising costs Delivery truck depreciation Depreciation on bake ovens Interest on bank loan Variable Fixed 2.50 1000 400 0.29 0.400.29 3.12 2. (TCO Units produced 14.ACCT 346 Student Name Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs.07 500 Total Costs $5.00 .000 3500 0.

000 units (Hint: Use Break Even $ from B Above) 1) What is the margin of safety in Dollars? 2) What is the margin of safety percentage? Total Correct Points 0 .000 how many units must it sell? B) What is the total revenue from A above? C) If Bravo actually sells 8.51) Part II Complete the following requirements A) If Bravo requires a profit of $5.unit of product and its monthly operating costs. (TCO 4) 40 Points Part I Enter your solution in the green cells for each of the following: Using the costs from Table A compute A) Breakeven units (rounded to 2 decimal places) B) Break-even sales dollars C) Contribution Margin D) Contribution Margin Ratio (enter as % for example 51% or decimal .

.

If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.000 $12. what recommendation would you make about Fruit & Nuts? Explain. Try Again Try Again Try Again Try Again 0 . Product Hi-Lo Whole Grain Fruit & Nuts Total Revenues $0 Try Again Variable product costs $0 Try Again Variable Selling & Administrative costs $0 Try Again Contribution Margin Fixed Product Costs Fixed Selling and Administrative Costs Allocated Common Costs $0 $0 $0 $0 Net Income $0 Try Again Points Based on your analysis.720 $6.370 ($3.000 $2.180 $23.500 $46. What would you advise Bravo to do? Using the Table below.360 $5.400 $10.900 $115. Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.500 $6.030 $12. compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.360 $3.000 $5.330 $2.720 $5.990) $9.360 $46.850 $2.850 $2.515 $6.030 $5.575 $31. The operating results for the last qua Product Revenues Variable product costs Variable Selling & Administrative costs Hi-Lo Whole Grain Fruit & Nuts Total $67.110 $15.000 $2.055 Contribution Margin Fixed Product Costs Fixed Selling and Administrative Costs Allocated Common Costs $27.275 $27.710 Required: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.110 $13.ACCT 346 Student Name Bravo Baking Co has expanded its product line to include several other specialty breads.700 $5.000 Net Income $11.800 $15.000 $11.

t & Nuts product. (TCO 7) 40 Points .erating results for the last quarter are provided below. uts product.

what is your recommendation regarding the new freezer? Explain .000 each year for maintenance. Also.000. The new unit has a larger capacity and Bravo estimates it can produce and sell more bread each year.200 in However.0 expected to last 10 years. be sure to show Cash Flow PV Factors Cost of new refrigeration unit After tax cash flow Annual electricity savings Additional annual maintenance costs Amount collected from disposal of unit Net present value Based on your analysis.ACCT 346 Student Name Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.000. Should Bravo Use the format below to complete the NPV computations: Note: Use PV Tables found in the PV tabs in the workbook. the new freezer will save $1. the new freezer will cost an additional $2. Be sure to enter 4 decimal places. The salvage value at the end of its life is $6. The old unit is fully depreciated and can Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. In addition to more sales. From these add the annual after-tax cash flow is expected to be $4. The cost of the new unit is $25.

000 and it is unit is fully depreciated and can be disposed at cost. Also. of return of 14%.some of its bread. PV Amounts Points 0.00 TCO 9 40 Points . The cost of the new unit is $25.200 in electricity each year. bread each year. be sure to show costs as negative values. From these additional sales new freezer will save $1. Should Bravo purchase the freezer? mal places.

25 hrs $9.58 Direct Labor( .25 .5 lbs) 2. Employees worked a total of 2200 hours and actual labor costs w Required: Part a .000 loaves of bread and used 4.29 .000 pounds of ingredients at a cost of $22. Compute the material price and quantity variance.00 Overhead 0. Bravo purchased 5. Bravo sold 9.500. The data below is provided for your use in determining Bravo Amount/Unit Standard Cost per unit Cost /Unit Standard Cost Material Cost (Ingredients) (.25 hrs * $9/hr) 2.57 Total 5. Material Price Variance = = ( - Fav/Unf > = Material Quantity Variance = = ( - Fav/Unf = Labor Rate Variance = = ( - Fav/Unf > = Labor Efficiency Variance = = = ( - Fav/Unf .ACCT 346 Student Name Bravo Baking uses standard costing to analyze its performance.650 pounds of ingredients. Also during the month.5 lbs $4.11 During the month.

uring the month. Bravo urs and actual labor costs were $19.998 ) * ) * ) * ) * Points 0 .TCO 10 40 Points ur use in determining Bravo's variances.

3418 23.7629 0.5568 13.2775 0.4173 0.9070 3.8700 0.3878 0.1460 0.3387 0.6756 0.8219 0.8900 0.2109 0.5976 0.7954 0.7441 0.5537 0.2204 32.00% 4.8880 0.9426 0.3335 0.1252 0.00% 1.4423 0.4057 0.5820 0.00 0.00 0.00 0.00 0.3751 0.7938 0.00 0.4936 0.3256 24.5835 0.3624 0.00 0.7224 0.4581 17.6139 11.5083 0.6095 0.6274 0.9327 0.00% 2.2942 0.1842 0.00 0.6342 0.1846 0.2765 0.1577 0.1002 8.6598 0.00 0.5553 0.8396 0.8706 0.00% 0.8360 0.4150 0.0730 .3118 0.9259 0.8163 0.7664 0.7026 0.3468 0.00 0.5219 0.2074 0.1406 0.6446 10.4120 0.9143 0.7730 0.7107 8.7130 0.00% 0.7885 0.5703 0.00 0.00 0.5002 0.1703 0.7903 0.00 0.9151 0.7273 0.4632 0.4388 0.3936 0.7430 0.8368 0.7720 0.1971 0.8195 0.1072 0.3166 0.00 0.1159 0.6768 9.8528 0.00 0.7493 0.8114 0.1228 0.1147 0.7894 0.2618 0.9803 0.6419 0.7346 0.5744 0.6730 0.1987 0.4810 16.4243 0.1609 0.4688 0.4502 0.2099 33.1550 0.6496 0.7579 0.4746 0.8626 0.2502 0.2741 0.00 0.8375 0.2429 30.8874 0.8034 0.3503 0.1379 7.1073 0.6006 0.8573 0.1643 0.9235 0.3305 0.00 0.2314 31.2965 0.2145 0.00 0.6302 0.1741 0.1722 0.1314 0.00 0.5051 15.5521 0.2812 27.5306 0.0920 0.00 0.5859 0.5631 0.8963 0.9612 0.3152 0.7142 0.2257 0.7462 7.00 0.3207 0.9434 0.5339 0.2330 0.2953 26.5919 0.1352 0.7473 0.1839 0.5403 0.8203 0.00 0.2851 0.3770 0.2959 0.6864 0.8890 0.6232 0.3607 0.3769 21.7284 0.7876 0.5303 14.6246 0.6651 0.4289 0.7921 0.9423 0.3883 0.6611 0.9901 0.7798 0.9057 0.00 0.3101 25.00 0.00 0.00 0.2198 0.3677 0.7307 0.2678 28.3589 22.5847 12.4363 18.8885 0.5067 0.8613 0.2415 0.7644 0.7835 6.7130 0.8131 0.9709 0.3957 20.00 0.4970 0.Present Value of $1 to be Received at the End of N Periods (PVIF) Period 1.5375 0.4637 0.4155 19.8535 0.5412 0.00 0.2470 0.00 0.9515 0.9053 0.4919 0.00% 0.4371 0.7050 0.8734 0.5100 0.0789 0.7014 0.8444 0.6227 0.8277 0.2919 0.3901 0.4776 0.00 0.2584 0.9706 0.9238 0.00 0.5439 0.6050 0.1462 0.1504 0.1999 34.00 0.00 0.7002 0.4564 0.3083 0.7201 0.6663 0.00% 5.3660 0.6217 0.1956 0.3405 0.6810 0.5202 0.5134 0.8227 5.9420 0.5584 0.6806 0.3714 0.8043 0.9346 0.4751 0.1904 6.3971 0.7350 0.4220 0.2636 0.2551 29.8548 0.7599 0.9524 2.6468 0.0994 0.8787 0.7568 0.5775 0.5874 0.2317 0.9804 0.4440 0.8638 4.00 0.7419 0.4000 0.5268 0.2703 0.9246 0.9615 0.00% 3.0852 0.00 0.9610 0.

3606 0.7831 0.0469 0.0768 0.0200 0.7312 0.0391 11.0099 0.1696 0.5645 0.0349 0.8417 0.3909 0.5921 0.5935 0.0728 0.2567 0.3505 0.0981 0.0266 0.1108 0.0114 0.5470 0.0402 0.0131 0.0431 0.0369 0.0298 0.6355 0.8696 0.0151 0.3762 0.6499 0.0471 0.0525 0.0334 0.0230 0.9174 0.7513 0.0808 0.5346 0.0868 0.4556 0.4251 0.9091 0.0196 0.0378 0.0822 0.1229 0.5428 0.0829 0.1599 0.0538 0.4523 0.0304 0.2311 0.3075 0.7695 0.1502 0.2946 0.0474 0.6750 0.0976 0.1486 0.0116 15.1883 0.3186 0.0895 0.1117 0.0826 0.3875 0.3522 0.0907 0.1631 0.0431 0.8264 0.0177 0.5718 0.5066 0.1415 0.2042 0.9.3996 0.6587 0.7084 0.1228 0.0634 0.6209 0.2120 0.0212 13.1069 0.0394 0.7972 0.0531 0.0331 0.4323 0.0289 0.0326 0.1978 0.0256 0.0839 0.0638 0.3759 0.0437 0.1827 0.1784 0.2149 0.0929 0.1160 0.2076 0.4039 0.1037 0.1117 0.8772 0.3262 0.6830 0.0255 0.1945 0.0462 0.1377 0.0763 0.00% 0.1378 0.2176 0.0086 .4817 0.1161 0.1799 0.1229 0.3855 0.1625 0.8116 0.1637 0.0238 0.0923 0.2745 0.0736 0.2394 0.2307 0.0754 0.0200 0.3269 0.1456 0.1300 0.4803 0.0534 10.0817 0.1869 0.1821 0.3329 0.0573 0.4604 0.2607 0.0264 0.0601 0.0288 12.2875 0.0691 0.2697 0.0226 0.0597 0.0157 14.1064 0.2320 0.0693 0.0485 0.0582 0.2858 0.3173 0.5674 0.0491 0.3506 0.0319 0.8929 0.00% 0.2366 0.1007 0.0532 0.1413 0.2633 0.6575 0.6133 0.2992 0.0738 0.0224 0.0703 0.00% 0.4665 0.0926 0.0355 0.5963 0.4241 0.2292 0.1635 0.0680 0.1015 0.0521 0.7118 0.0630 0.6931 0.0588 0.1252 0.00% 0.4972 0.0151 0.8850 0.2519 0.2090 0.3555 0.0174 0.2575 0.0611 0.5194 0.0663 0.5132 0.9009 0.1807 0.1401 0.7561 0.1597 0.1264 0.00% 0.1351 0.2046 0.5019 0.0291 0.4224 0.0946 0.0172 0.0659 0.2843 0.0417 0.1240 0.00% 0.00% 0.0419 0.0132 0.3220 0.7722 0.0560 0.2472 0.2897 0.1078 0.0374 0.4339 0.1528 0.

8017 7.6730 3.0456 16.8493 11.00% Present Value of an Annuity of $1 per Period for N Periods (PVIFA) Period 1.3121 3.00 6.9524 2.00 7.2064 5.2303 6.3838 8.5824 6.00% 2.7455 9.0197 6.1062 11.00 13.8839 2.7535 12.2919 13.5777 12.3676 9.4172 5.8286 2.8633 13.2961 10.4466 9.00 4.1622 7.00% 1.4622 6.00 1.6517 7.9135 1.00 8.3797 16.00% Rate 1.00% 5.3295 6.4699 7.5623 14.7217 11.00 3.7179 13.9379 11.00 15.1078 10.1339 12.00 5.5660 8.5361 7.7665 5.3601 7.00 2.3484 10.8077 3.0236 7.5152 7.7171 3.9173 5.00 14.9704 1.9540 9.7232 4.7135 4.2442 8.7861 7.5460 5.1581 11.2526 8.2741 18.8869 8.5903 12.7955 5.3255 7.6593 11.0037 12.00 17.5753 9.00% 0.00 10.4353 7.0853 20.0591 10.9920 13.9346 1.5797 4.8181 .7282 6.6350 9.2098 6.9020 3.0757 7.9713 6.3893 5.5940 8.2469 6.1184 10.3851 8.5771 3.7605 8.9434 1.7122 10.8527 9.9427 8.3719 9.3983 14.8534 4.3577 8.7632 10.9856 9.9410 2.3356 10.3936 14.2260 15.8514 9.8861 1.7466 6.6243 3.2551 10.2950 9.00% 4.6299 3.5611 11.1059 10.8276 11.3238 13.7327 6.4518 4.8986 15.4987 7.1657 11.6014 5.9615 0.9259 1.00 13.5595 8.6036 9.00 9.6896 19.4773 10.8775 13.1216 9.4713 8.4632 9.3514 14.4720 6.00% 3.7751 2.1002 4.9901 0.00% 0.00 16.9416 1.7833 2.5631 9.00 12.8594 3.5302 8.3872 4.9709 0.1390 7.00 0.9804 0.3064 12.1079 9.1661 12.8080 2.0021 5.8651 12.7101 7.Start Rate 1.2124 4.1337 11.4651 4.6523 10.9038 8.00 11.8378 17.6785 14.00 18.00% 0.9826 8.1109 7.6229 5.9927 4.8334 2.2421 5.7864 8.7868 9.

8109 6.4924 6.6039 6.1034 7.0188 5.2497 7.9174 1.4527 5.8684 5.3553 4.8696 1.9952 6.5313 3.1607 7.1317 5.6231 15.4262 5.9137 3.3729 6.9464 5.1285 10.7125 2.9380 7.7908 4.4331 3.00% 0.3658 7.1218 6.00% 0.2065 6.9975 4.8850 1.8237 8.9377 6.6257 2.8424 6.7862 8.9633 12.1422 6.9176 6.5504 6.7845 4.1909 7.3126 8.9091 1.7716 5.3282 5.5136 11.1196 7.7590 6.8897 4.7291 6.8772 1.4437 3.2305 4.9009 1.3025 6.1461 5.4694 13.4206 5.2397 3.6603 5.6282 6.6389 4.2593 .4226 4.1944 6.8892 6.4624 6.4951 6.9819 7.9745 3.3649 8.3667 7.7556 8.8137 7.2883 4.2014 8.00% 0.8474 5.8929 1.9501 9.6061 7.3216 2.00% 0.00% 0.7122 5.4177 6.00% 0.7245 5.0472 6.0330 5.1024 3.5638 4.1604 4.7016 7.2651 6.5488 7.2337 5.8393 7.3522 3.1114 4.6502 5.8399 6.1699 3.5370 5.9740 7.4674 6.2161 5.6869 5.6959 4.7591 2.8550 3.9.3612 2.4869 3.0216 8.5436 8.5831 5.00% 0.5172 3.0021 6.5348 5.6048 4.2832 2.3349 5.0373 3.7988 5.6467 2.0607 8.8887 4.4869 7.4018 3.4235 6.3792 7.1280 6.9676 5.8052 7.4859 5.4873 4.7499 6.9542 6.7355 2.0248 14.1982 6.6681 2.6901 2.1446 6.

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