Overview: In the third milestone, you will jump forward in time: Imagine that yo
ID: 2404473 • Letter: O
Question
Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information to analyze your company's performance. Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company's financial health. Therefore, you need to analyze your company's performance over the last month using the data provided below. Note: Your instructor will create an announcement sharing the income statement data by the end of Module Four. All of the data you need for the cost-of- goods-manufactured statement can be found in the "COGM Schedule" tab of your workbook. For your variance analysis, use the following financial data: Actual Rate $11.50 Actual Price $3 Grooming labor Standard Hours 150 Standard Quantity 1000 Standard Rate $12 Standard Price $2 Actual Hours 180 Actual Quantity 1200 Grooming Materials Prompt: Complete your work in the provided workbook by assessing your company's financial performance, specifically addressing the following critical elements - Financial Statements o Create a statement of cost of goods manufactured in the "COGM Schedule" tab. o Create an income statement in the "Income Statement" tab. . Variance Analysis Identify all variances for the direct labor time and the materials price in the "Variances" tab. Evaluate the significance of the variances in the "Variances" tab. o o Incorporate all feedback from previous milestones to finalize your workbook
Explanation / Answer
1. COGM - There is no opening or closing work in progress
2. Sales reveue is based on selected price levels. I have used the price levels you have selected in break even analysis
3.
Statement of Cost of Goods Sold Beginning work in progress - Direct Materials Materials - Beginning Inventory Add: Purchases during January 5,000.00 Deduct: Ending Materials (60%) 3,000.00 Materials used in production 2,000.00 Direct Labor 6,240.00 Factory Overhead 2,800.00 Total Manufacturing OH 11,040.00 Deduct: Ending Work in Progress - Cost of Goods Manufactured 11,040.00Related Questions
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