Instructions

ACCT 346
Student Name
Bravo Baking Company began operations in May of 2010 with the production and sales of speciality breads.
The company has experienced a good market demand for its high protein, low carbohydrate product called "Hi-Lo"
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's customers,
the local retailers, have been asking for more specialty breads from the company. The decision to expand will be made
in the coming weeks.
Weekly Assignments: Complete the assigned Tab each week.
In each worksheet there are several Green colored cells. These cells must be filled in with your response.
Due Points Available Points Earned
Tab1) Product vs. Period Costs Week 1 10 10.00
Tab 2) Cost of Goods Manufactured Schedule Week 2 30 25.71
Tab 3) Break Even Analysis Week 3 40 0.00
Tab 4) Incremental Analysis Week 5 40 0.00
Tab 5) Capital Budgeting Week 6 40 0.00
Tab 6) Variance Analysis Week 7 40 0.00
200 35.71 Total

Tab 1 ProductPeriod

ACCT 346
Student Name
For Tables A : From the list below, identify if the cost item is a "Product Cost" or "Period Cost" by typing "Product" or "Period" in the appropriate box. 10 points For Table B: From the list below, identify if the cost item is a "Direct Cost" or "Indirect Cost" by typing "Direct" or "Indirect" in the appropriate box.
Table A Enter either "Product" or "Period" Table B Enter either "Direct" or "Indirect"
Flour used in baking bread product 1 Correct Flour used in baking bread direct Correct 1
Factory Supervisor Salaries product 1 Correct Factory Supervisor Salaries indirect Correct 1
Bakers wages product 1 Correct Bakers wages direct Correct 1
Rent for Executive Offices period 1 Correct Factory Insurance indirect Correct 1
Sales Commissions period 1 Correct Rent for Factory indirect Correct 1
Utilities used in the factory product 1 Correct Utilities used in the factory indirect Correct 1
Advertising costs period 1 Correct Cleaning Bake Ovens indirect Correct 1
Delivery truck costs period 1 Correct Insurance on Factory indirect Correct 1
Paper wrappers for bread product 1 Correct Paper wrappers for bread direct Correct 1
Depreciation on bake ovens product 1 Correct Depreciation on bake ovens indirect Correct 1
Eggs, salt, water used for baking product 1 Correct Eggs used for baking direct Correct 1
Interest on bank loan period 1 Correct Small amounts of salt used indirect Correct 1
Factory Insurance product 1 Correct Factory Insurance indirect Correct 1
13 Points 10.00 13

Tab 2 COGM&COGS

ACCT 346
Student Name
Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values in the Green shaded cells. (TCO 2) 30 points
Table C Cost of Goods Manufactured Schedule 1
Materials used in baking bread 32,000 Correct Beginning Work In Process $8,000 Correct 1
Factory Supervisor Salaries 20,000 Materials
Bakers wages $32,000 Beginning Inventory Materials $10,000 Correct 1
Rent for Executive Offices 36,000 Plus: Purchases $26,000 Correct 1
Sales Commissions 10000 Materials Available $36,000 Correct 1
Utilities used in the factory 5000 Less: Ending Inventory Materials $4,000 Correct 1
Advertising costs 12000 Materials Used $32,000 Correct 1
Delivery truck costs 25000 Direct Labor $32,000 Correct 1
Depreciation on bake ovens 500 Overhead
Interest on bank loan 250 Factory Rent $7,500 Correct 1
Beginning Inventory Materials 10,000 Depreciation on bake ovens $500 Correct 1
Beginning Work in Process 8000 Utilities used in Factory $5,000 Correct 1
Ending Inventory Materials 4000 Other Overhead costs $1,200 Correct 1
Inventory Purchases 26000 Total Overhead $14,200 Correct 1
Ending Work in Process 2500 Total Manufacturing Costs $78,200 Correct 1
Other Overhead costs 1200 Total Work in Process 0
Beginning Finished Goods Inventory 7500 Less: Ending Work in Process $2,500 Correct 1
Ending Finished Goods Inventory 6000 Cost of Goods Manufactured $83,700 Correct 1
Rent for Factory 7500
Complete only the Green cells. Values in Red are from the schedule above.
Cost of Goods Sold Schedule
Beginning Finished Goods Inventory $7,500 Correct 1
Beginning Work In Process $8,000 Correct
Materials
Beginning Inventory Materials $10,000 Correct
Plus: Purchases $26,000 Correct
Materials Available $36,000 Correct
Less: Ending Inventory Materials $4,000 Correct
Materials Used $32,000 Correct
Direct Labor $32,000 Correct
Overhead
Factory Rent $7,500 Correct
Depreciation on bake ovens $500 Correct
Utilities used in Factory $5,000 Correct
Other Overhead costs $1,200 Correct
Total Overhead $14,200 Correct
Total Manufacturing Costs $78,200 Correct
Total Work in Process $0 Try Again
Less: Ending Work in Process $2,500 Correct
Cost of Goods Manufactured -$2,500 Try Again
Goods Available for Sale $83,700 Try Again 0
Less: Ending Finished Goods Inventory $6,000 Correct 1
Cost of Goods Sold Schedule $83,700 Try Again 0
Points 25.71 18

Tab 3 CVP

ACCT 346
Student Name
Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO 4) 40 Points
Units produced 14,000
Part I Enter your solution in the green cells for each of the following:
Table A Variable Fixed Using the costs from Table A compute
Materials used in baking bread 2.29 A) Breakeven units (rounded to 2 decimal places) 0.00
Factory Supervisor Salaries 0.12 B) Break-even sales dollars 0.00
Bakers wages 2.29 C) Contribution Margin 0.00
Rent for Executive Offices 3,000 D) Contribution Margin Ratio (%) 0.00
Sales Commissions 3500
Utilities used in the factory 0.50 Part II Complete the following requirements
Advertising costs 1000 A) If Bravo requires a profit of $5,000 how many units must it sell? 0.00
Delivery truck depreciation 400 B) What is the total revenue from A above? 0.00
Depreciation on bake ovens 0.07 C) If Bravo actually sells 8,000 units
Interest on bank loan 500 1) What is the margin of safety in Dollars? 0.00
2) What is the margin of safety percentage? 0.00
Total Costs $5.26 $8,400.00
Price Charged per unit $7.89
Total Correct
Points 0 0.00
Hint: use spreadsheet formulas to compute your answers

Tab 4 Incremental Analysis

ACCT 346
Student Name
Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below. (TCO 7) 40 Points
Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues $67,575 $31,800 $15,900 $115,275
Variable product costs $27,030 $12,720 $6,360 $46,110
Variable Selling & Administrative costs $13,515 $6,360 $3,180 $23,055
Contribution Margin $27,030 $12,720 $6,360 $46,110
Fixed Product Costs $5,000 $5,000 $5,000 $15,000
Fixed Selling and Administrative Costs $5,700 $2,850 $2,850 $11,400
Allocated Common Costs $5,000 $2,500 $2,500 $10,000
Net Income $11,330 $2,370 -$3,990 $9,710
Required: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.
If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.
Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.
What woud you advise Bravo to do?
Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.
Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues 0
Variable product costs 0
Variable Selling & Administrative costs 0
Contribution Margin 0
Fixed Product Costs 0
Fixed Selling and Administrative Costs 0
Allocated Common Costs 0
Net Income 0
Points 0 0

Tab 5 Capital Budgeting

ACCT 346
Student Name
Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.
The new unit has a larger capacity and Bravo estimates it can produce and sell an more bread each year. From these additional sales
the after tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year. TCO 9
However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it is 40 Points
expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost.
Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?
Use the format below to complete the NPV computations:
(Note: Use PV Tables on pages 342 and 343. Also, be sure to show costs as negative values)
Cash Flow PV Factors PV Amounts
Cost of new refrigeration unit 0
After tax cash flow 0
Annual electricity savings 0
Additional annual maintenance costs 0
Amount collected from disposal of unit 0
Net present value 0
Points 0 0

Tab 6 Variance Analysis

ACCT 346 TCO 10
Student Name 40 Points
Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.
Standard Cost per unit Cost /Unit Amount/Unit Standard Cost
Material Cost (Ingredients) (.5 lbs) 2.29 .5 lbs $4.58
Direct Labor( .25 hrs * $9/hr) 2.25 .25 hrs $9.00
Overhead 0.57
Total 5.11
During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo
purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998
Required:
Part a. Compute the material price and quantity variance.
Material Price Variance =
= ( - ) *
= Fav/Unf >
0 0
Material Quantity Variance =
= ( - ) *
= Fav/Unf
0 0
Labor Rate Variance =
= ( - ) *
= Fav/Unf >
0 0
Labor Efficiency Variance =
= ( - ) *
= Fav/Unf
Points 0 0 0
0

1

2

3

4

5

6

7

A

B

ACCT 346

Student Name

Table C

Materials used in baking bread

Factory Supervisor Salaries

Bakers wages

Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct

values in the

Green

shaded cells.

Instructions

ACCT 346
Student Name BINISH MAROOF
Bravo Baking Company began operations in May of 2010 with the production and sales of speciality breads.
The company has experienced a good market demand for its high protein, low carbohydrate product called "Hi-Lo"
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's customers,
the local retailers, have been asking for more specialty breads from the company. The decision to expand will be made
in the coming weeks.
Weekly Assignments: Complete the assigned Tab each week.
In each worksheet there are several Green colored cells. These cells must be filled in with your response.
Due Points Available Points Earned
Tab1) Product vs. Period Costs Week 1 10 10.00
Tab 2) Cost of Goods Manufactured Schedule Week 2 30 30.00
Tab 3) Break Even Analysis Week 3 40 0.00
Tab 4) Incremental Analysis Week 5 40 40.00
Tab 5) Capital Budgeting Week 6 40 40.00
Tab 6) Variance Analysis Week 7 40 40.00
200 160.00 Total

Tab 1 ProductPeriod

ACCT 346
Student Name
For Tables A : From the list below, identify if the cost item is a "Product Cost" or "Period Cost" by typing "Product" or "Period" in the appropriate box. 10 points For Table B: From the list below, identify if the cost item is a "Direct Cost" or "Indirect Cost" by typing "Direct" or "Indirect" in the appropriate box.
Table A Enter either "Product" or "Period" Table B Enter either "Direct" or "Indirect"
Flour used in baking bread Product 1 Correct Flour used in baking bread Direct Correct 1
Factory Supervisor Salaries Product 1 Correct Factory Supervisor Salaries Indirect Correct 1
Bakers wages Product 1 Correct Bakers wages Direct Correct 1
Rent for Executive Offices Period 1 Correct Factory Insurance Indirect Correct 1
Sales Commissions period 1 Correct Rent for Factory Indirect Correct 1
Utilities used in the factory Product 1 Correct Utilities used in the factory Indirect Correct 1
Advertising costs Period 1 Correct Cleaning Bake Ovens Indirect Correct 1
Delivery truck costs Period 1 Correct Insurance on Factory Indirect Correct 1
Paper wrappers for bread Product 1 Correct Paper wrappers for bread Direct Correct 1
Depreciation on bake ovens Product 1 Correct Depreciation on bake ovens Indirect Correct 1
Eggs, salt, water used for baking Product 1 Correct Eggs used for baking Direct Correct 1
Interest on bank loan Period 1 Correct Small amounts of salt used Indirect Correct 1
Factory Insurance Product 1 Correct Factory Insurance Indirect Correct 1
13 Points 10.00 13

Tab 2 COGM&COGS

ACCT 346
Student Name
Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values in the Green shaded cells. (TCO 2) 30 points
Table C Cost of Goods Manufactured Schedule 1
Materials used in baking bread 32,000 Correct Beginning Work In Process $8,000 Correct 1
Factory Supervisor Salaries 20,000 Materials
Bakers wages $32,000 Beginning Inventory Materials $10,000 Correct 1
Rent for Executive Offices 36,000 Plus: Purchases $26,000 Correct 1
Sales Commissions 10000 Materials Available $36,000 Correct 1
Utilities used in the factory 5000 Less: Ending Inventory Materials $4,000 Correct 1
Advertising costs 12000 Materials Used $32,000 Correct 1
Delivery truck costs 25000 Direct Labor $32,000 Correct 1
Depreciation on bake ovens 500 Overhead
Interest on bank loan 250 Factory Rent $7,500 Correct 1
Beginning Inventory Materials 10,000 Depreciation on bake ovens $500 Correct 1
Beginning Work in Process 8000 Utilities used in Factory $5,000 Correct 1
Ending Inventory Materials 4000 Other Overhead costs $1,200 Correct 1
Inventory Purchases 26000 Total Overhead $14,200 Correct 1
Ending Work in Process 2500 Total Manufacturing Costs $78,200 Correct 1
Other Overhead costs 1200 Total Work in Process $86,200 Correct 1
Beginning Finished Goods Inventory 7500 Less: Ending Work in Process $2,500 Correct 1
Ending Finished Goods Inventory 6000 Cost of Goods Manufactured $83,700 Correct 1
Rent for Factory 7500
Complete only the Green cells. Values in Red are from the schedule above.
Cost of Goods Sold Schedule
Beginning Finished Goods Inventory $7,500 Correct 1
Beginning Work In Process $8,000 Correct
Materials
Beginning Inventory Materials $10,000 Correct
Plus: Purchases $26,000 Correct
Materials Available $36,000 Correct
Less: Ending Inventory Materials $4,000 Correct
Materials Used $32,000 Correct
Direct Labor $32,000 Correct
Overhead
Factory Rent $7,500 Correct
Depreciation on bake ovens $500 Correct
Utilities used in Factory $5,000 Correct
Other Overhead costs $1,200 Correct
Total Overhead $14,200 Correct
Total Manufacturing Costs $78,200 Correct
Total Work in Process $86,200 Correct
Less: Ending Work in Process $2,500 Correct
Cost of Goods Manufactured $83,700 Correct
Goods Available for Sale $91,200 Correct 1
Less: Ending Finished Goods Inventory $6,000 Correct 1
Cost of Goods Sold Schedule $85,200 Correct 1
Points 30.00 21

Tab 3 CVP

ACCT 346
Student Name
Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO 4) 40 Points
Units produced 14,000
Part I Enter your solution in the green cells for each of the following:
Table A Variable Fixed Using the costs from Table A compute
Materials used in baking bread 2.29 A) Breakeven units (rounded to 2 decimal places) 0.00
Factory Supervisor Salaries 0.12 B) Break-even sales dollars 0.00
Bakers wages 2.29 C) Contribution Margin 0.00
Rent for Executive Offices 3,000 D) Contribution Margin Ratio (%) 0.00
Sales Commissions 3500
Utilities used in the factory 0.50 Part II Complete the following requirements
Advertising costs 1000 A) If Bravo requires a profit of $5,000 how many units must it sell? 0.00
Delivery truck depreciation 400 B) What is the total revenue from A above? 0.00
Depreciation on bake ovens 0.07 C) If Bravo actually sells 8,000 units
Interest on bank loan 500 1) What is the margin of safety in Dollars? 0.00
2) What is the margin of safety percentage? 0.00
Total Costs $5.26 $8,400.00
Price Charged per unit $7.89
Total Correct
Points 0 0.00
Hint: use spreadsheet formulas to compute your answers

Tab 4 Incremental Analysis

ACCT 346
Student Name
Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last quarter are provided below. (TCO 7) 40 Points
Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues $67,575 $31,800 $15,900 $115,275
Variable product costs $27,030 $12,720 $6,360 $46,110
Variable Selling & Administrative costs $13,515 $6,360 $3,180 $23,055
Contribution Margin $27,030 $12,720 $6,360 $46,110
Fixed Product Costs $5,000 $5,000 $5,000 $15,000
Fixed Selling and Administrative Costs $5,700 $2,850 $2,850 $11,400
Allocated Common Costs $5,000 $2,500 $2,500 $10,000
Net Income $11,330 $2,370 -$3,990 $9,710
Required: Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.
If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.
Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.
What woud you advise Bravo to do?
Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.
Product Hi-Lo Whole Grain Fruit & Nuts Total
Revenues $67,575 $31,800 $0 $99,375 Correct 1
Variable product costs $27,030 $12,720 $0 $39,750 Correct 1
Variable Selling & Administrative costs $13,515 $6,360 $0 $19,875 Correct 1
Contribution Margin $27,030 $12,720 $0 $39,750 Correct 1
Fixed Product Costs $5,000 $5,000 $2,500 $12,500 Correct 1
Fixed Selling and Administrative Costs $5,700 $2,850 $1,425 $9,975 Correct 1
Allocated Common Costs $5,000 $2,500 $1,250 $8,750 Correct 1
Net Income $11,330 $2,370 -$5,175 $8,525 Correct 1
Points 40 8

Tab 5 Capital Budgeting

ACCT 346
Student Name
Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.
The new unit has a larger capacity and Bravo estimates it can produce and sell an more bread each year. From these additional sales
the after tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year. TCO 9
However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it is 40 Points
expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost.
Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?
Use the format below to complete the NPV computations:
(Note: Use PV Tables on pages 342 and 343. Also, be sure to show costs as negative values)
Cash Flow PV Factors PV Amounts
Cost of new refrigeration unit -25000 0 -25000 Correct 1
After tax cash flow 4000 5.216 Try Again 20864.4 Correct 1
Annual electricity savings 1200 5.216 Try Again 6259.32 Correct 1
Additional annual maintenance costs -2000 5.216 Try Again -10432.2 Correct 1
Amount collected from disposal of unit 6000 0.27 Try Again 1618.2 Correct 1
Net present value -6690.28 Correct 1
Points 40.0000000002 6

Tab 6 Variance Analysis

ACCT 346 TCO 10
Student Name 40 Points
Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.
Standard Cost per unit Cost /Unit Amount/Unit Standard Cost
Material Cost (Ingredients) (.5 lbs) 2.29 .5 lbs $4.58
Direct Labor( .25 hrs * $9/hr) 2.25 .25 hrs $9.00
Overhead 0.57
Total 5.11
During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo
purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998
Required:
Part a. Compute the material price and quantity variance.
Material Price Variance =
= ( 22500.00 - $5,000.00 ) * 4.58
= (400.00) Fav/Unf > Fav
Correct Correct 1 1
Material Quantity Variance =
= ( 21,297.00 - 4,500.00 ) * 4.58
= $687.00 Fav/Unf unf
Correct Correct 1 1
Labor Rate Variance =
= ( 20000.00 - $2,200.00 ) * 9.00
= 200.00 Fav/Unf > Unf
Correct Correct 1 1
Labor Efficiency Variance =
= ( 19,800.00 - 2,250.00 ) * 9.00
= ($450.00) Fav/Unf fav
Correct Correct Points 40 1 1
8
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