Acc 206

Week 4 – Assignment

Week Four Assignment

1. Listen to the following videos and then complete the assignments using the changed numbers on the guidance report.  Place your answers on the guidance report.
2. Open the Guidance Report and rework the problem with the changed numbers and place your answers on the guidance report. Do not alter the guidance report.
3. Submit the guidance report using the Assignment Submission tab below.

The answers are based on start date of the course, my start date is themonth of January

Complete the following problems and exercises:

• Chapter Six Exercise 2
• Chapter Six Exercise 5
• Chapter Six Problem 3
• Chapter Seven Exercise 5
• Chapter Seven Problem 5

Week Four Guidance Report

Chapter 6 Exercise 2

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+6+Exercise+2/0_ggcovwwr (Links to an external site.)Links to an external site.

Chapter 6 Exercise 5

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+6+Exercise+5/0_aoiw6r4l (Links to an external site.)Links to an external site.

Chapter 6 Problem 3

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+6+Problem+3/0_cajxb3ml (Links to an external site.)Links to an external site.

Chapter 7 Exercise 5

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+7+Exercise+5/0_y4cimsga (Links to an external site.)Links to an external site.

Chapter 7 Problem 5

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+7+Problem+5/0_dszrqdrc (Links to an external site.)Links to an external site.t

Student

Guidance Report

Guidance Report

–

– Apr

0

0

80000 85000 90000

0

85000 90000 95000 100000 105000 110000

0

Current month A/R sale collections
Previous month A/R sale collections
Cash sales
Ending balance

Current month A/R sale collections
Previous month A/R sale collections
Cash sales
Ending balance

Account to
be changed Original
Amount

10000

Cash receipts

Cash receipts

0

YOUR ANSWERS BASED UPON COURSE START DATE
July
Beginning cash balance
August

Beginning cash balance
Add: Cash receipts
Deduct: Cash payments
Cash excess (deficiency) before financing
Financing:
Borrowing to maintain minimum balance
Principal repayment
Interest payment
Ending cash balance

September

Beginning cash balance
Add: Cash receipts
Deduct: Cash payments
Cash excess (deficiency) before financing
Financing:
Borrowing to maintain minimum balance
Principal repayment
Interest payment
Ending cash balance

Jan – Feb Mar – Apr May – Jun Jul – Aug Sep – Oct Nov – Dec

1500

1600 1700 1800 1900 2000 2100

1800 1900 2000 2000 2100 2200

2000 2000 2100 2100 2200 2300

YOUR ANSWERS BASED UPON COURSE START DATE

Jan
Feb

Expected sales (units)
Selling price per unit
Budgeted sales revenue

Mar

Expected sales (units)
Selling price per unit
Budgeted sales revenue

Jan

Feb
Number of units sold
Desired ending finished goods
Total finished units needed
Less beginning inventory finished goods
Number of units to produce

Mar
Number of units sold
Desired ending finished goods
Total finished units needed
Less beginning inventory finished goods
Number of units to produce

FOR THE QUARTER ENDED MARCH 31, 20X2
Jan

Feb
Planned production, in units
Units of direct material per per finished unit
Direct materials used in production (units)
Add: Desired ending direct materials inventory
(60% of following month’s needs)
Total direct materials needed
Less: Beginning direct materials inventory (units)
Direct materials to be purchased (units)
Cost per unit
Cost of direct material purchases

Mar
Planned production, in units
Units of direct material per per finished unit
Direct materials used in production (units)
Add: Desired ending direct materials inventory
(60% of following month’s needs)
Total direct materials needed
Less: Beginning direct materials inventory (units)
Direct materials to be purchased (units)
Cost per unit
Cost of direct material purchases

Jan

Feb
Accounts pay., 12/31/X1
Jan. purchases
Feb. purchases
March purchases
Total disbursements for purchases

Mar
Accounts pay., 12/31/X1
Jan. purchases
Feb. purchases
March purchases
Total disbursements for purchases

Jan

Feb
Planned production (units)
Labor time per unit (hours)
Total labor hours needed
Direct labor cost per hour
Total budgeted direct labor cost

Mar
Planned production (units)
Labor time per unit (hours)
Total labor hours needed
Direct labor cost per hour
Total budgeted direct labor cost

Account to
be changed Original
Amount

0

40000 40000 40000 40000 40000 40000 40000

YOUR ANSWERS BASED UPON COURSE START DATE

at Actual

Actual Quantity of Input

a. Variable Overhead Efficiency Variance a. Variable Overhead Efficiency Variance
b. Fixed Overhead Volumn Variance

Actual Fixed Overhead Budgeted Fixed Overhead
Act Oh -(Est var oh/est hrs x act lab hrs)

c. Overhead spending variance

Account to
be changed Original
Amount

6500

7000 7100

YOUR ANSWERS BASED UPON COURSE START DATE

Std cost

Act Qty

Std rate

Act hrs

Actual Quantity The Amount the

Actual Quantity of Input
Prices (Aq X Ap) of Input Should Allowed for
Have Cost — Production, at
Variable: (Aq X Sp) Standard Prices
Fixed: Budget (Sq X Sp)

N/A
Variable overhead efficiency variance
Fixed Budgeted Applied Fixed Overhead
Fixed Overhead Volume Variance

Actual Fixed Overhead Budgeted Fixed Overhead

Overhead spending variance

Ashford University ACC206

Week Four

LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT

Guidance Report Download Date

11/28/17

Guidance Report Revision Date

12/1/17

YELLOW INDICATES ACCOUNT AMOUNTS CHANGED

Change Account to:

Change to: Based Upon Course Start Date

Exercise/ Problem

Account to be changed

Original Amount

Jan

Feb

Mar

May – Jun

Jul – Aug

Sep – Oct

Nov – Dec

Ch 6 EX 2

Sales May

60000

6500

7000

75000

80000

85000

90000

Sales June

95000

10000

105000

110000

Sales July

1

1500

Questions

YOUR ANSWERS BASED UPON COURSE START DATE

Cash Collections May

Beginning balance

Current month A/R sale collections

Previous month A/R sale collections

Cash sales

Ending balance

Cash Collections June

Cash Collections July

A/R ending balance

AUDIO/VIDEO EX 5 <<<

Ch 6 Ex 5

July

Beginning cash balance

$ 9,000

$ 11,000

$ 8,000

$ 12,000

$ 7,000

$ 13,000

August

63000

$ 64,000

$ 62,000

$ 65,000

$ 61,000

$ 66,000

$ 60,000

September

7100

$ 72,000

$ 70,000

$ 73,000

$ 69,000

$ 74,000

$ 68,000

Add: Cash receipts

Deduct: Cash payments

Cash excess (deficiency) before financing

Financing:

Borrowing to maintain minimum balance

Principal repayment

Interest payment

Ending cash balance

Ch 6 Pb 3

Forcasted sales Jan

1600

1700

1800

1900

2000

2100

Forcasted sales Feb

2200

Forcasted sales Mar

2300

Forcasted sales Apr

2400

WATSON COMPANY

SALES BUDGET

FOR THE QUARTER ENDED MARCH 31, 20X2

Expected sales (units)

Selling price per unit

Budgeted sales revenue

SCHEDULE OF CASH COLLECTIONS

Accounts receivable 12/31/X1

Jan Collections

Feb Collections

Feb collections of Jan sales

Mar Collections

Mar collections of Feb sales

Total budgeted cash collections

PRODUCTION BUDGET

Number of units sold

Desired ending finished goods

Total finished units needed

Less beginning inventory finished goods

Number of units to produce

DIRECT MATERIAL PURCHASES BUDGET

Planned production, in units

Units of direct material per per finished unit

Direct materials used in production (units)

Add: Desired ending direct materials inventory

(60% of following month’s needs)

Total direct materials needed

Less: Beginning direct materials inventory (units)

Direct materials to be purchased (units)

Cost per unit

Cost of direct material purchases

SCHEDULE OF CASH DISBURSEMENTS FOR MATERIAL PURCHASES

Accounts pay., 12/31/X1

Jan. purchases

Feb. purchases

March purchases

Total disbursements for purchases

DIRECT LABOR BUDGET

Planned production (units)

Labor time per unit (hours)

Total labor hours needed

Direct labor cost per hour

Total budgeted direct labor cost

Ch 7 Ex 5

Estimated fixed overhead

40000

410000

420000

430000

440000

450000

460000

Estimated direct labor hours

a. Variable Overhead Efficiency Variance

Actual Quantity

The Amount the

Standard Quantity

of Input

Prices (Aq X Ap)

of Input Should

Allowed for

Have Cost —

Production, at

Variable: (Aq X Sp)

Standard Prices

Fixed: Budget

(Sq X Sp)

ACT Lab Hrs X est rate

Est rate X Units manu x std lab hrs

b. Fixed Overhead Volumn Variance

N/A

Fixed Budgeted

Applied Fixed Overhead

(Est fix/ est hrs)x units man x std lab hrs

Actual Fixed Overhead

Budgeted Fixed Overhead

Act Oh -(Est var oh/est hrs x act lab hrs)

c.

Overhead spending variance

Ch 7 Pb 5

Book amounts

Actual production

6600

6700

6800

6900

a. Compute Arrow’s direct material variances.

Act cost

Std cost

Act Qty

Std Qty

Materials Quantity Variance

Materials Price Variance

Total Materials Variance

b. Compute Arrow’s labor variances.

Act rate

Std rate

Act hrs

Std hrs

Labor Efficiency Variance

Labor Rate Variance

Total Labor Variance

c. Compute Arrow’s variances for factory overhead.

Variable overhead efficiency variance

The amount

of Input at Actual

Inc hours x std rate

Act pro x OH std hrs x std rate

d.

Fixed Overhead Volume Variance

yearly/12

Std rat x act prod x fix OH rate

e. Overhead spending variance

Incur OH- var rate x hours

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX5.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Guidance%20Report/Guidance%20Report.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20PB%205.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX%208.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX5.mp4