Type of Costing Method

About This AssignmentImagine you are the new CFO for a furniture manufacturer named American Furniture Company (AFC) that has only been in business for a few years. The company manufactures three products: wooden chairs, tables and dressers. AFC started off as a ‘Mom & Pop’ shop but has grown rapidly. AFC uses one assembly line to build all three products, and each product is hand-assembled before going through an automated painting process. You have been tasked with modernizing the company’s accounting methods towards their future goals.The four different parts of this assignment should be submitted together. While outside sources are NOT required for this assignment, formatting and citations for all parts of this assignment should be done in APA format. For more information on APA format, please see the section on APA Formatting below.Part #1Justify to the CEO what type of costing method (job-order, process costing, variable costing and/or activity-based costing) you would recommend AFC use. Assume that all of the items produced are sold. Use the following accounting data in your analysis.Production & Cost Description Production & Cost AmountsAnnual Production 5000 chairs/10 batches; 4000 tables/20 batches; 3000 dressers/20 batchesRaw materials in board feet (BF) per unit 1 chair = 10 BF; 1 table = 15 BF; 1 dresser = 20 BFRaw materials price per unit $2 per BFAssembly labor time (hours per unit) 1 chair = 5 hours; 1 table = 7 hours; 1 dresser = 10 hoursLabor pay rate $15 per hourAssembly department overhead per direct labor hour $5Painting process machine hours (MH) 1 chair = 0.5 MH; 1 table = 1.5 MH; 1 dresser = 2 MHPainting department overhead per MH $20Changeover cost per batch 1 chair = $100; 1 table = $150; 1 dresser = $200Sales price 1 chair = $180; 1 table = $270; 1 dresser = $270Fixed Cost $50,000Variable SG&A $5 per unitFixed SG&A $25,000Within your analysis, make sure to include the following:• Briefly discuss the advantages and disadvantages of the four costing methods.• Narrow the choice down to two cost methods you would most recommend and provide your justification.• Demonstrate how each of the two costing methods you chose would allocate overhead and administrative costs by calculating product costs using each method.• Provide an income statement for each of the two methods.• Recommend one of the two final costing methods, providing justification for your final costing method selection.Your justification should be between 1,000 to 1,500 words in length.Part #2Determine what inventory cost flow assumption (weighted average, FIFO and/or LIFO) would be best suited for valuing inventory near the current replacement cost. You will make your analysis based on the following inventory transactions involving chairs only. Remember that the sales price of chairs is $180 per unit according to the table in Part 1.Transaction Goods Price1/1 Beginning Inventory 120 chairs $120/unit1/15 Transferred into finished goods 140 chairs $130/unit3/15 Sold 110 chairs $180/unit4/15 Transferred into finished goods 100 chairs $140/unit6/15 Sold 90 chairs $180/unit7/15 Transferred into finished goods 130 chairs $150/unit9/15 Sold 120 chairs $180/unit10/15 Transferred into finished goods 140 chairs $160/unit12/15 Sold 110 chairs $180/unitWithin your analysis, make sure to include the following:• Briefly discuss the advantages and disadvantages of each inventory costing assumption.• Calculate the cost of goods sold and ending inventory for each cost flow assumption.• Demonstrate which of these should be used to net the highest income during inflationary periods.• Provide justification on what inventory costing assumption you choose.• Record journal entries for each purchase and sales transaction listed.Your justification should be between 500 to 750 words in length.Part #3You will need to submit a budget report to the CEO, including an explanation of the utility of master budgets. You will also submit a variance report that shows how the company is performing versus budgeted amounts. Use the following data.Amount of Goods Sold Per Quarter:Q1 Q2 Q3 Q4Chairs sold per quarter 1150 1200 1250 1400Tables sold per quarter 900 950 1000 1150Dressers sold per quarter 650 700 750 900Target Sales Goal Per Quarter:Goods QuantityChairs 1300Tables 1100Dressers 800Q1 beginning inventory:Goods QuantityChairs 120Tables 90Dressers 70Assume that the material and labor costs from Part 1 are standards. Compare those standard costs to the actual amounts listed below. These are the actual amounts used for the entire fiscal year:Actual amount of wood purchased and used 46,120 bd. ft.Actual cost of wood purchased and used $80,028Actual amount of direct labor hours 17,900Actual cost of direct labor $275,550Within your analysis, make sure to include the following:• Create variance reports for Q1, Q2, Q3, and Q4 against the Quarterly Budget.• Generate a quarterly budget for the upcoming year that includes sales, production, materials and labor budgets. Assume a 10% increase in sales.• Explain how a master budget can be a useful tool in aligning a company’s operations to its long-term goals.• Discuss how a variance report can be used to direct management toward production issues.Your explanations of master budgets and variance reports should be 500 to 750 words in length.Part #4Use the following data to generate a quote model for future business. This can be accomplished by performing a high-low or regression analysis to generate an equation relating direct labor hours to product cost:Year Quarter Direct labor hrs. Manufacturing cost2014 Q1 2,512 $224,9502014 Q2 2,432 $214,1002014 Q3 2,645 $226,8402014 Q4 2,723 $228,7602015 Q1 2,355 $211,950Within your analysis, make sure to include the following:• Explain how jobs can be estimated by using a quote model based on previous data.• Discuss the different methods of cost estimation.• Prepare a bid for a job that would require 2,700 direct labor hours.Your justification should be between 350 to 500 words in length

Don't use plagiarized sources. Get Your Custom Essay on
Type of Costing Method
From $8/Page
Order Essay
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

Do you need to ace that test? We are here to help you. We have qualified writers to present you with a 100% error-free paper. Toptutor4me offers you a unique and personalized custom paper that will assist you in getting that good grade.

Your paper will go through high editorial standards to meet your satisfaction. We have qualified writers to assist you to reach your academic goal without going through academic stress. We put into consideration the paper formatting, the pages required, valid citations, and included files to present you with an acceptable paper.

Our writers have a comprehensive experience and have perfected the art of crafting your paper. Regardless of the academic level or topic, we are prepared to provide a quality custom paper upon your order request.

Professional Academic Writers

A student needs professional assistance outside class time. Our writers possess Ph.D. in different fields and hold several years’ experience. Before hiring our writers, we give them tests and strictly consider their educational backgrounds.

After the sieving process, they are trained to ensure they deliver well-structured papers to our customers. Our experts work around the clock to provide correct answers and give any educational help. They not only deliver on time but also follow the customers’ instructions.

Every writer is a fluent native speaker of English and is from the USA, Canada, UK, or Australia. Our experts approach tasks effectively depending on their specialization.

Affordable Prices

Is the deal too good to be true? Toptutor4me is a reliable assignment help website on the market that considers students’ daily needs for academic help. Our assignment help is reasonably priced to approximately 90% of students around the world.

Our objective is to help students achieve academic excellence and we believe that inconsiderable charges should not hinder a student from getting the desired help.

In case the customer is not satisfied, we offer revisions and rewrites without extra charges. There are no unpleasant surprise charges at the checkout. We ensure maximum privacy and safe payment services.

On-Time delivery

Tight deadline? Paper due tomorrow? Do not worry our writers are ready to help. Students have difficulties balancing their social and academic life, therefore, getting caught up with academic deadlines.

Tackling your assignment at the last minute does not give you the advantage of carrying out extensive research and coming up with correct answers. Our experienced writers are knowledgeable and always available to work on your paper.

We guarantee you that outstanding papers are delivered on time at the customer's convenience. All you have to do is place an order giving a specific time delivery that works in your favor.

100% Originality

The ultimate deal-breaker in achieving a good grade is submitting an imitative paper. Plagiarism is a breach of examination standards and has serious consequences. Lecturers test the students' understanding of the taught topic by checking for originality.

Our experts' main consideration is providing a free plagiarized paper that will meet the teachers' requirements. They have perfected the skill of presenting unique personalized papers with relevant citations and references if needed. We ensure extreme originality and in case of any customer concerns, we offer a plagiarism report.

We want to work under customer's trust that their paper is unique and will support them in accomplishing the best grade.

Customer Support 24/7

Our website is user-friendly and super useful! Mycoursewriter is an online writing service that is always available to provide you with academic assistance you need.

Customers’ concerns are considered by our friendly customer support team that is available at all times.

Over ten years’ experience in the writing market has enabled us to grow and learn how to give our customers the golden experience.

We have diligently satisfied hundreds of students and you can witness this at the toptutor4me review page. Do not hesitate to contact us at our website email: support@toptutor4me.com

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Are you searching for a satisfactory legitimate writing website? Look no further. Toptutor4me is the best writing service ready to offer you long-term support in your academic needs. We have been providing homework help for years that has gained our customers’ trust. Our writers are ready to work on any assignment type from undergrad to Ph.D. level.

We guarantee you quality papers, timely delivery, and 24/7 response. Our website is not only the cheapest but also authentic and the most unfailing with an assurance team that manages our orders. We offer assignment help in every subject and topic despite the difficulty, let us ease your assignment burden.


Essay Writing Services

Essay writing is a commonly assigned college homework. Sitting down for an hour or so crafting a perfect essay is a tedious time-consuming task. You might find yourself staring at a blank paper surfing through different websites trying to devise answers for your essay.

Toptutor4me is a legit service that offers to write your essay at a pocket-friendly price. Your essay is given maximum attention by the assigned professional writer who includes fresh ideas and personalizes your paper to your preference. Order essay help by including the question, the page number, preferred format, and any files related to your essay.

Our essays are unique and go through a strict protocol that includes anti-plagiarism and rigorous proofreading. You do not have to struggle with finding ideas for your essay as our writers are not only skilled but also have the correct answers for your paper. Let our scholars work on your essay and you can take care of other responsibilities besides your student tasks.


Admission and Business Papers

Writing an admission paper is not everyone’s inclination but this should not be a hindrance to fulfilling your goal. Writing a perfect paper to get you to that school or company imposes mind stress as there are certain expectations you must meet.

Failure to meet these expectations might make your dream unfulfilled. Admission papers require you to be unique, open, and display confidence but not seem aggressive. A business paper necessitates the student to be aware of current happenings in the world and have a wide knowledge of the business history and trends.

These needs research and skills and we have the qualified writers to meet all these prospects that will satisfy your assessor or lecturer. Our team will help you conquer that milestone in your academic life or your career all you need to do is provide the necessary information for our writers to craft your paper.


Editing and Proofreading

An error-free paper is a must in achieving that desired grade. We have an assurance team to ensure your paper has no grammar or formatting mistakes.

After our writers have given correct answers to your question in the necessary pages, our editorial team proofreads the paper to ensure quality work. They check for grammar mistakes, plagiarism and ensure proper paper formatting.

Issues such as the specified fonts, spacing, and educational formats are considered. We can also provide the plagiarism reports if needed. Our team has skills in formatting any paper type be it MLA, APA, Harvard, or Chicago. Under no circumstances will a poorly formatted paper be forwarded to you as we ensure careful proofreading.


Technical Papers

Assignments are part of the learning process and one may not have the knowledge of the correct answers, this should not stress you as we have qualified scholars to help you.

A challenging topic does not imply that you should fail. Our qualified writers hold PhDs in different subjects therefore they are intelligent and no task is complex to them. Despite the complexity, a competent scholar will be assigned to meet your academic needs.

Different assignments are confusing as they may involve different skills that you are not familiar with. This is not an issue to our skilled professional writers as they provide the correct answers for any essay type despite the intricacy. Stop stressing about your homework by ordering assignment help at Mycoursewriter and go have fun!