MANAGERIAL ANALYSIS–Ideal Manufacturing
There are two separate exercises in this assignment. You will submit a separate file for each exercise.
Note: This exercise is on page 880 in Chapter 17 of the text.
Ideal Manufacturing Company has supported a research and development (R&D) department that has for many years been the sole contributor to the company’s new farm machinery products. The R&D activity is an overhead cost center that performs services only to in‐house manufacturing departments (four different product lines), all of which produce agricultural/farm/ranch related machinery products.
The remaining assignment details, instructions, and questions are in an attached document below.
Prepare this assignment in Excel using formulas for the calculations. For part d, write your response in the Excel worksheet as well. There is no grading rubric for this assignment. APA formatting is not required for this assignment.
Please include a title page with identifying information and double space the assignment so I can insert comments.
Week4 Ideal Manufacturing.docx
Equivalent Units-2nd Assignment
Purpose of Assignment
The materials covered this week distinguish between the different costing methods and provides needed tools for decision making. This case study focuses on determining equivalent units in a production business setting.
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Scenario: Davis Skaros has recently been promoted to production manager. The company uses process costing. He has just started to receive various managerial reports, including the production cost report you prepared. It showed his department had 2,000 equivalent units in ending inventory.
His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he saw on his production line at the end of the month 4,000 units.
Prepare a maximum 300-word response and explain to Mr. Skaros why his production cost report showed only 2,000 equivalent units in ending inventory. In accounting terms, explain to him the concept of equivalent units versus the physical units on the production floor.
There is no grading rubric for this assignment.
APA formatting is not required for this assignment. Please include a title page with identifying information and double space the assignment so I can insert comments.
You should make one submission that contains two files. Please use Microsoft Word for the equivalent units exercise. You may use Word or Excel for Ideal exercise. If you use Excel, write the answer to Part D in the Excel file and not in a separate Word document.
Please use this as a reference
Kimmel, P. , Weygandt, J. , Kieso, D. (2017) Accounting : Tools for Business Decision Making, 6th edition
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