Need Finance Homework Help? Ask an Expert

# I need help with my Accounting Project.You would like

Customer Question
Hi, I need help with...
Hi, I need help with my Accounting Project.
You would like to start a business manufacturing a unique model of bicycle helmet. In preparation for an interview with the bank to discuss your financing needs, you develop answers to the following questions. A number of assumptions are required (and some are provided for you below); clearly note all assumptions that you make.
Instructions
(a) Identify the types of costs that would likely be involved in making this product by populating a spreadsheet with the five columns indicated below.
Product Costs
Item Direct Materials Direct Labor Manufacturing Overhead Period Costs
I would like to see a minimum of 6 manufacturing overhead costs and 7 period costs. You should show one line item for both direct materials and direct labor but please provide some detail of the costs in parentheses. For example, if you were manufacturing a car you would write Direct Materials (steel, aluminum, plastic, etc.).
Assign hypothetical monthly dollar figures to each costs you identified. The totals for each column must be \$300,000 for Direct Materials, \$160,000 for direct labor, \$100,000 for Manufacturing Overhead, and \$500,000 for period costs.
(b) Assume you have no raw materials or work in process beginning or ending inventories. Prepare a projected cost of goods manufactured schedule for the first month of operations.
(c) You must produce 80,000 helmets the first month of operations. Compute the cost to produce one bicycle helmet.
(d) What type of cost accounting system will you likely use—job order or process costing? Explain your answer!
(e) Explain how you would assign costs in either the job order or process costing system you plan to use.
(f) Classify your costs as either variable or fixed costs. For simplicity, assign all costs to either variable or fixed, assuming there are no mixed costs, using the format shown.
Item Variable Costs Fixed Costs Total Costs
(g) Compute the unit variable cost (rounded to two decimal places), using the production number in (c).
(h) You will sell 75,000 helmets the first month of operations. Set a unit selling price between \$15 and \$20 rounded to the nearest whole dollar, and compute both the contribution margin per unit and the contribution margin ratio.
(i) Determine your break-even point in dollars and in units.
(j) Prepare projected operating budgets (sales, production, direct materials, direct labor, manufacturing overhead, selling and administrative expense, and income statement). You will need to use the below assumptions for each of the following:
Direct materials budget: 0.3 Kg of direct materials required to produce one helmet; \$12.50 per Kg; desired ending direct materials (assume none).
Direct labor budget: 0.2 hours required per helmet; rate is \$10.00 per hour.
Budgeted income statement: Income tax expense is 30% of income from operations.
(k) Prepare a cash budget for the month. Assume the percentage of sales that will be collected from customers is 75%, and the percentage of direct materials that will be paid in the current month is 75%. Income taxes are not paid this month.
(l) The relevant range of activity is from 75,000 to 80,000 helmets per month. Recast your manufacturing overhead budget into a flexible monthly budget for each increment of 1,000 helmets produced from 75,000 to 80,000 helmets.
(m) Identify one potential cause of materials, direct labor, and manufacturing overhead variances for your product.
(n) Assume that you wish to purchase production equipment that costs \$4,000,000. Determine the cash payback period, utilizing the monthly cash flow that you computed in part (k) multiplied by 12 months (for simplicity).
Submitted: 2 years ago.Category: Business and Finance Homework
Show More
Show Less
6/15/2015
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
F. Naz, Bachelor's Degree
Satisfied Customers: 5,345
Experience: Have completed B.COM and CA Finalist
Verified
What is your deadline, and what is the size of answers in words or in page length, thanks.
Customer reply replied 2 years ago
If you can do some part by tomorrow, it will be even better.
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
What should be the length of answer in words or page length, thanks.
Customer reply replied 2 years ago
Anywhere from 5 pages more
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
I have sent you the offer as the assignment is lengthy and require calculations as well, thanks.
Customer reply replied 2 years ago
If you reduce it to 3 pages how much will it be?
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
3 pages double spaced, the fair price will be \$295. if you agree I can send you another offer, thanks.
linda_us, Master's Degree
Satisfied Customers: 852
852 Satisfied Customers
Experience: A tutor for Business, Finance, Accounts and other related topics.

linda_us is online now

A new question is answered every 9 seconds

• Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
• Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

## What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.

EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.

RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.

DianeDallas, TX

< Previous | Next >

## Meet the Experts:

linda_us

Master's Degree

852 satisfied customers

A tutor for Business, Finance, Accounts and other related topics.

F. Naz

Bachelor's Degree

5,345 satisfied customers

Have completed B.COM and CA Finalist

Bizhelp

Accountant

260 satisfied customers

BA degree and Certified Public Accountant

Mr. Gregory White

Master's Degree

211 satisfied customers

M.A., M.S. Education / Educational Administration

Brittany

Professional

30 satisfied customers

Dimitry K., Esq.

Doctoral Degree

19 satisfied customers

SusanAthena

Master's Degree

13 satisfied customers

12 years experience consulting & management

< Previous | Next >

Related Business and Finance Homework Questions
Rosie has owned a successful luncheonette for several years.
Rosie has owned a successful luncheonette for several years. Tired of the long hours and eager to try another way of life, she decides to buy a fishing boat and start a charter service near Key West. … read more
F. Naz
Bachelor's Degree
5,345 satisfied customers
IPX Packaging) is located on page 445 in your textbook. Read the case and utilize the data included in the case to answer the following questions. 1. Calculate the overhead rate set at the beginning o… read more
F. Naz
Bachelor's Degree
5,345 satisfied customers
Read the entire problem for and Darlene Jasper starting on
Please read the entire problem for David and Darlene Jasper starting on pages 6-69 before entering any information in your tax software. The Jaspers' received a 1099-INT for their interest income. The… read more
taxmanrog
Master\u0027s Degree
699 satisfied customers
Monica is planning to start her own accounting, tax, and
Monica is planning to start her own accounting, tax, and financial planning business. Her uncle Gus has given her file cabinets, a desk, computer equipment, and bookcases that were in his den until he… read more
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Financial Ratio Analysis on the Kroger Corporation. Obtain
Financial Ratio Analysis on the Kroger Corporation. Obtain the most current SEC Form 10-K (annual financial report) from the company's web site (Do not use the Annual Report that is sent to shareholde… read more
F. Naz
Bachelor's Degree
5,345 satisfied customers
Kyle, a single taxpayer in the 39.6% tax bracket engaged in
Kyle, a single taxpayer in the 39.6% tax bracket engaged in the following disposition transactions during this tax year. You may assume the dispositions were made to unrelated parties unless told othe… read more
Dr. Donna Kakonge
Doctor of Education
193 satisfied customers
Assistance with multiple choice and True / False questions
Assistance with multiple choice and True / False questions concerning Six Sigma Yellow Belt level. 70 questions total… read more
GLENN
Master of Mathematics
330 satisfied customers
Using only.gov Websites report the current GDP, the current
Using only.gov Websites report the current GDP, the current Federal deficit, the current Federal debt, and the bot***** *****ne of the current (last) budget approved by Congress (surplus or shortage).… read more
F. Naz
Bachelor's Degree
5,345 satisfied customers
Computer Science/information systems related] Need to draw a
Computer Science/information systems related] Need to draw a Workflow diagram for a business process and a 'order product' business process.Purchasing telecommunication products online can be represen… read more
David L.
Bachelor\u0027s Degree
6 satisfied customers
Rocky Mountain Tire Center sells 10,000 ​go-cart tires per
Rocky Mountain Tire Center sells 10,000 ​go-cart tires per year. The ordering cost for each order is ​\$40​, and the holding cost is 30​% of the purchase price of the tires per year. The purchase price… read more
Ryan
Bachelor\u0027s Degree
1,060 satisfied customers
I have an international finance assignment with 4 problems
Hi I have an international finance assignment with 4 problems but It's on a PDF file … read more
Dr. Donna Kakonge
Doctor of Education
193 satisfied customers
The first phase of the tax return problem is designed to
The first phase of the tax return problem is designed to introduce you to some of the tax forms and the supporting documentation (Forms W-2, 1099-INT, etc.) needed to com- plete a basic tax return. Th… read more
taxmanrog
Master\u0027s Degree
699 satisfied customers
FruitStuff Corporation, which manufactures dried fruit
FruitStuff Corporation, which manufactures dried fruit snacks, is looking to find the best way to display and sell its product. There are two types of stores that sell the snacks: supermarkets and who… read more
GLENN
Master of Mathematics
330 satisfied customers
How many questions can you answer at one time. I have 40
How many questions can you answer at one time JA: What state are you in? It matters because laws vary by location. Customer: i have 40 JA: Has anything been filed or reported? Customer: no JA: Anythin… read more
Dr. Donna Kakonge
Doctor of Education
193 satisfied customers
Ethics for Tax Professionals - multiple choice WILL BONUS I
Ethics for Tax Professionals - multiple choice WILL BONUS I need someone that will not give me the wrong answers to my questions. I am looking for a real Tax Professional, to check to see is my answer… read more
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Where can I submit a file for help? I have the problems in
Where can I submit a file for help ? I have the problems in an excel file, they just need to be worked out so that I can see the calculations. … read more
David L.
Bachelor\u0027s Degree
6 satisfied customers
I would like help with a homework, similar to the following:
Ryan
Bachelor\u0027s Degree
1,060 satisfied customers
I need to do a financial analysis report, Ok. How much is