Reference no: EM132285470

Cost Accounting Assignment - Final Project

Overview - Cost accounting is used for two main purposes. The first purpose is to determine the actual costs of products, projects, progresses, or services so an organization can report correct and accurate information on their financial statements. The second purpose is to aid the management team in making decisions and guiding the planning and control functions of the organization. Cost accounting provides an analysis of cost behavior, cost-volume-profit relationships, budgeting, resource costing, and activity based costing. The roots of cost accounting are in the manufacturing business, but cost-accounting concepts are also used in service industries.

This assessment focuses on the SRS Educational Supply Company case study. SRS is a company that provides materials and supplies to educational institutions. The SRS business model is to be a one-stop provider of educational supply needs. For example, some of their product lines include workbooks, classroom visual aids, instructor support materials, art supplies, lab supplies, and administrative office: supplies. While SRS serves all levels of educational institutions, the majority of their customers are K-12 schools. Sales can vary quite a bit from month to month, as K-12 educational institutions have seasonal ordering patterns. Thus, budgeting is vital for planning and cash flow purposes. SRS has a June 30^th fiscal year end.  

The final project is divided in two parts. In final project, you will review the financial information provided for the four main departments of the organizations: sales, purchasing, operations, and finance. Based on the information provided, you will create departmental budgets for each of the four departments. You will then create a master budget based on the department budgets. In additions, you will create an executive brief presentation regarding the budgeting process. You will also provide an overview of the department and master budgets.

In this assignment, you will demonstrate your mastery of the following course outcomes:

• Prepare budgets for various purposes in order to aid managerial decision-making processes.
• Prepare cost accounting reports to internally communicate information to managerial decision makers.

Prompt - The Company has four main managers: a sales manager, a purchasing manager, an operations manager, and a finance manager. Each manager has both general information about the company as a whole and information about their own department. The information known only by the departmental manager is more accurate than the general corporate information.

Based on the information and data in the case study document, create a master budget for the three-month period beginning July 1st and ending September 30^th. You are responsible for creating a budget for each department that will become the master budget.

Specifically, you will address the following critical elements listed below.

I. Budgeting: Prepare Budgets

A. Review the financial information in the case study. Create spreadsheets and enter your data for the following:

1. Prepare the sales budget by month and in total.

2. Prepare a schedule of expected cash collections from sales by month and in total.

3. Prepare a merchandise purchase budget in dollars by month and in total.

4. Prepares schedule of expected cash disbursements for merchandise purchases by month and in total.

5. Prepare a selling and administrative budget by month and in total.

6. Prepare a schedule of expected cash disbursements for selling and administration by month and in total.

7. Prepare a cash budget by month and in total

8. Prepare a budgeted income statement (pro forma) for the three-month period ending September 30^th using the absorption costing approach.

9. Prepare a master budget balance sheet (pro forma) as of September 30th.

II. Reporting

A. Analyze Data

1. Briefly summarize each department budget and note any large variances.

2. Explain two variances that might cause concern or prompt further analysis.

B. Executive Brief Presentation

1. Create an executive briefing presentation in which you briefly summarize all budgets. Include all supporting documentation as addendums to the brief.

Summative Case Study: SRS Educational Supply Company

Part I - Job Order costing/Process Costing

Submission Requirements -

As the accountant-the company has asked you to perform the following tasks:

1. Prepare an overview diagram of the job-costing system at the SRS Educational Press.

2. Prepare journal entries to summarize the 2017 transactions. As your final entry, dispose of the year-end under- or over allocated manufacturing overhead as a write-off to cost of goods sold. Number your entries. Explanations for each entry may be omitted.

3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.

4. How did the SRS Educational Press perform in 2017? Should the company continue to have in-house press production?

You will submit your answers/explanations for Final Project in a memo-style format to the company's leadership team. Use Microsoft Word and Excel.

Part 2- Departmental and Master Budgets

Submission Requirements -

At this point, you should have a budget for each of the four departments. You will take the four departmental budgets and prepare the maker budget. You will submit the four budgets and the master budget in one Excel file.

Then, using the budget project you just completed, you will create a PowerPoint presentation that will serve as an executive brief to the organization's leadership team. The presentation should include an overview of the budgets and the process for creating the budgets, and it should answer the questions listed below:

1. What were your goals for the master budget you created for July, August, and September?

2. What process did you use to create each of the four budgets? Did the budgeting process differ between different departments? Explain.

Attachment:- Assignment Files.rar