Manufacturing Accounting MFG

Excel Applications for Accounting Principles

Quiz 16 :Manufacturing Accounting MFG

PROBLEM DATA The following information is for Twisp Industries for the year ended December 31, 2011: REQUIREMENT You have been asked to prepare a schedule of cost of goods manufactured and sold for the year just ended. Review the worksheet MFG that follows these requirements.
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Essay
PROBLEM DATA The following information is for Twisp Industries for the year ended December 31, 2011: REQUIREMENT Open the file MFG from the website for this book at cengagebrain.com. Enter the formulas and titles where requested on the worksheet. The cells that contain zeros now will change to nonzero values as formulas are entered. Enter your name in cell A1. Save the file as MFG2. Print the worksheet when done. Also print your formulas. Check figure: Cost of goods sold (cell D46), $5,727,900. Free Essay Answer: Answer: By entering formulas and titles, create a schedule of cost of goods manufactured and sold. This is a schedule that is unique to manufacturers and indicates how money is being spent during the production process. Worksheet showing schedule of Cost of goods manufactured and sold: WHAT-IF ANALYSIS The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firm's cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income Why Free Essay Answer: Answer: Enter the new problem data for 2012 into the company's data section. Use the 12/31/11 ending figures for materials inventory, work in process, and finished goods as the 1/1/12 beginning figures. Worksheet showing schedule of Cost of goods manufactured and sold: If sales and other expenses were the same in 2011 and 2012, then Company T would have earned more income in 2011. This is because the company's cost of goods sold was lower in 2011 resulting in a higher net income. CHART ANALYSIS Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be$________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012 If not, answer the following: In 2012, direct labor needed to be \$________________. When the assignment is complete, close the files without saving them again.