Comprehensive Project 1 v2

Using Excel

Boyd Corporation is a manufacturer that uses job

order costing. On January 1, 2024, the company's

inventory balances were as follows:

Raw Materials Inventory: $63,000

Work-in-Process Inventor: $41.000

Finished Goods Inventory: $58,000

the current year, 2024, the company's

predetermined overhead rate per direct labor-hour

was based on a cost formula that estimated

$806,000 of total manufacturing overhead for an

estimated activity level of 62,000 direct labor- hours.

12. Use the contribution margin approach to compute the annual increase in net operating income if sales increase to 501 units.

13. Use the contribution margin approach to compute the change in net operating income if sales fall by 90 units.

14. Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume decreases by 50 units .

15. Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% and advertising spending is increased by $ 5,000.

PLEASE USE CELL REFERENCES AND FORMULAS ALONG WITH ANSWERS IF POSSIBLE :)

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1 Comprehensive Project 1 V2 2 Using Excel 3 Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 4 2024, the company's inventory balances were as follows: 5 6 Raw Materials Inventory $63,000 7 Work-in-Process Inventory $41,000 B Finished Goods Inventory $58,000 9 the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct 10 labor-hours Requirement 1 Computation of Predetermined Overhead allocation rate - Total estimated OH costs / Total estimated DLHS Predetermined overhead allocation rate = $806,000 / 62,000 DLHS = $13 per DLHS Date a) Requirement 2 Account / Explanation Raw Materials Inventory Accounts Payable Debit Credit $ 558,000 $ 558,000 b) $ 528,000 Work-in-Process Inventory Raw Materials Inventory $ 528,000 c) Work-in-Process Inventory Manufacturing Overhead Selling and administrative expenses Wages Payable $ 648,000 $ 198,000 $ 288,000 $ 1,134,000 d) Selling and administrative expenses Accounts Payable $ 415,000 $ 415,000 e) $ 548,000 Manufacturing Overhead Accounts Payable $ 548,000 f) Work-in-Process Inventory (44,000 DLHs * $13) $ 572,000 Manufacturing Overhead $ 572,000 g) $ 1,728,000 Finished Goods Inventory Work-in-Process Inventory $ 1,728,000 h) $ 2,848,000 Accounts Receivable Sales Revenue $ 2,848,000 $ 1,738,000 Cost of Goods Sold Finished Goods Inventory $ 1,738,000 Accounts Receivable $ 1.728,000 Requirement 3 T-accounts Raw Materials Inventory Beg. Bal. $ 63,000 $ 558,000 $ 528,000 b. h. End. Bal. $1,728,000 End. Bal.IS 93,000 Work in Process Inventory Beg. Bal. 41,000 b. $ 528,000 $ 1,728,0008 c. $ 648,000 f. $ 572,000 Finished Goods Inventory Beg. Bal. $ 58,000 $ 1,728,000 $ 1,738,000 n. End. Bal. $ 61,000 End. Bal. $ 48,000 Wages Payable $ 1,134,000 Accounts Payable $ 558,000 a. $ 415,000 d. $ 548,000 e. $ 1,521,000 End. Bal. End. Bal. $ 1,134,000 Sales Revenue $ 2,848,000 h. C. Manufacturing Overhead $ 198,000 $ 572,000. $ 548,000 $ 174,000 e. End. Bal. $ 2,848,000 End. Bal. $ h. 1. Cost of Goods Sold S 1,738,000 $ 174,000 Selling and administrative expenses $ 288,000 $ 415,000 d. End. Bal. 1,912,000 End. Bal. 703,000 Credit Date 1) Requirement 4 Account / Explanation Cost of Goods Sold Manufacturing Overhead $ Debit 174,000 $ 174,000 Requirement 5 Boyd Corporation Schedule of Cost of Goods Manufactured For the Year 2024 Beginning Work in Process inventory $ 41,000 Direct Materials used in production $ 528,000 Direct Labor $ 648,000 Manufacturing Overhead $ 572,000 Total Manufacturing Costs $ 1,748,000 Total cost of work in process $ 1,789,000 Less: Ending Work in Process Inventory $ 61,000 Cost of Goods Manufactured $ 1,728,000 Requirement 6 Boyd Corporation Schedule of Cost of Goods Sold For the Year 2024 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold $ 58,000 $ 1,728,000 $ 1,786,000 $ 48,000 $ 1,738,000 $ 174,000 $ 1,912,000 Requirement 7 Boyd Corporation Income Statement For the Year 2024 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 2,848,000 $ 1,912,000 $ 936,000 $ 703,000 $ 233,000 46 Requirement 8 Use the information provided below the high low method and the contribution margin approach to prepare a contribution format income statement Use your mixed cost formulas to create your contribution format statement Reference the DATA cell(s) as provided to complete your statement below. Formatas numbers. Round to 2 decimal places where appropriate 48 43 50 51 52 53 54 55 Boyd Corporation Income Statement For the Year 2023 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income $2 280.000 1.560.000 720,000 597 000 $||123 000 Boyd sold 400 units in 2023 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 High Low Method Cost of Goods Sold Step 1 - Variable cost per unit $ 3.520 Step 2 - Fixed Cost $152 000 Step 3 - Mixed Cost Formula C=F+1060* (STATE the ACTUAL formula in the blue box provided) Selling & Administrative Costs Step 1 - Variable cost per unit $ 3.520 74 75 76 Step 2 - Fixed Cost $152,000 Step 3 - Mixed Cost Formula C=F+1060'0 (STATE the ACTUAL formula in the blue bon provided) 78 A Requirement 9 Use the contribution margin approach to compute the company's annual breakeven in units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data Breakeven in Units 291 5 Requirement 10 Use the contribution margin ratio approach to compute the breakeven point in sales dollars. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data Format the ratio as a percent, breakeven in dollars as accounting number format in whole dollars. Contribution margin ratio 19,59% Breakeven in Dollars $ 1,658,781.36 7 1 2 3 Requirement 11 Use the contribution margin approach to compute the annual sales level (in units) required to earn a target operating income of $655,000 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Target sales level (in units) 5,001,864 15 16 Requirement 12 Use the contribution margin approach to compute the annual increase in operating income if sales increase to 501 units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 13 Use the contribution margin approach to compute the change in net operating income if sales fall by 90 units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 14 Use the contribution margin approach to compute the change in net operating income if the selling price per unit increases by $20 per unit and the sales volume decreases by 50 units. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income Requirement 15 Use the contribution margin approach to compute the change in net operating income if the sales increase by 5% and advertising spending is increased by $5,000 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units or dollars New Operating Income change in Operating Income