Introduction Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies. Create a name and establish a location for the business.Construct a mi

STUCK with your assignment? When is it due? Hire our professional essay experts who are available online 24/7 for an essay paper written to a high standard at a reasonable price.


Order a Similar Paper Order a Different Paper

Introduction

Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

  • Create a name and establish a location for the business.
  • Construct a mission statement for the business.
  • Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies.

  • Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials. Research and identify the cost of wages for your two employees as your direct labor. It typically takes two days to make 1,000 cookies.
  • Estimate and explain the cost per cookie based on process costing with 40% conversion costs. Identify the top three processes you feel are needed to make the cookies and prepare a production cost sheet for one of those processes.
  • Estimate and explain the sales price you plan to set per cookie based on the cost data.

Part 3: Compare and contrast the costing methods used in this project, including which you believe provides the most useful information as a manager.

Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.

Conclusion and Recommendations Use the  Unit II Cookie Project Spreadsheet Templates for your job order, and process costing spreadsheets to be embedded in your case study document. Be sure to use APA formatting throughout and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report.

Introduction Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies. Create a name and establish a location for the business.Construct a mi
7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 1/10 % 76 %0 SafeAssign Originality Report CSU SafeAssign Plagiarism Check Tool •SafeAssign Originality Report Generator I % 76 Total Score : High risk George Landry Submission UUID :8401d811-9f21-4bbe-2ab4-f f188f74c7cf Total Number of Reports 1 Highest Match 76 % Cost Accounting Project.docx Average Match 76 % Submitted on 07/14/21 07:33 AM EDT Average Word Count 1,606 Highest : Cost Accounting Project.docx % 76 Attachment  1 Institutional database  (9) Student paper Student paper Student paper Student paper Student paper Student paper Student paper Student paper Student paper Internet  (1) wikipedia Top sources  (3) Excluded sources  (0) View Originality Report – Old Design Word Count :1,606 Cost Accounting Project.docx 4 3 5 7 2 9 8 10 6 1 4 Student paper 3 Student paper 5 Student paper 1 Cost Accounting Project George Landry Columbia Southern University Abstract Any start-up’s success is determined by the strategy outlined in the business plan. Sweet Cookie Company will be able to layout the stages of e ciently implementing its idea with the help of a business plan. Because cookie development is a process, the company will utilize process costing as its costing method. Aside from that, the production will entail creating identical Chocolate Chips Cookies on a considerable scale. The unit cost per cookie will be $0.792 based on the system costing estimate, and the sale price will be $1.2 per cookie. The corporation will be able to enhance sales revenue by selling many units of the product. Cost Accounting Project Introduction When it comes to turning a concept into a product, an entrepreneur must create a solid business strategy or plan. La Rocca (2020) found that devel- oping a business plan allows an entrepreneur to identify the particular actions that are necessary to make a business idea successful. It creates a platform for an investor to implement important initiatives, ranging from determining the best source of funding to selecting the Setting goals, strategic objectives, and alignment of one’s business are critical for an investor. It is worth noting that only when one has a business plan will this be possible. Sweetie Cookie Company is a new business endeavor that will cater to cookie lovers’ demands. In the United States, the cookie market is currently growing. Young adults and teenagers’ heightened interest and passion for the product have been crucial in the market’s rise. Young adults and teenagers between the ages of 18 and 24 will be the business’s target market. The location of the company and its mission statement will also be covered in the document. In addition, the paper will calculate the cost and sales per cookie using both job order and process costing methods. Furthermore, the report will analyze and contrast the two costing methodologies and recommend which is best for Sweet Cookie Company’s cookie development. Part 1: Establishing a Cookie Business 1 2 3 4 3 2 3 1 4 4 4 4 4 3 4 5 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 2/10 Sweet Cookie Company will be a start-up company based in San Francisco, California. The company will purposely focus on catering to customers that enjoy cookies. The company will build close relationships with its clients and o The Sweet Cookie Company will focus on manufacturing Chocolate Chip Cookies. The company’s mission statement will be to provide one-of-a-kind, high-quality cookies made with fresh, natural ingredients that have a delectable taste. The cookies will be available at a reasonable price to ful who are in the moderate to upper-income classes. Part 2: Develop Costing and Sales Information Costs Charged per Job Current Month Cost Summary Direct Materials $150 $150 Direct Labor $320 $320 Overhead (30% of direct labor) $96 $96 Total $566 $566 Units Completed ÷ 1000 Product Unit Cost $0.57 Sales Estimate per unit $1.00 Process Cost Estimation Units $ Units $ Material 1,000 150 Conversion to Finished goods (40%) 1,000 792 Direct Labor 320 Overheads 96 566 Abnormal gain 126 Total 792 Total 792 Cost per Unit $0.792 Sales price per cookie $1.2 According to the calculations, the cost per cookie for job order costing is lesser than the price per cookie for the process costing. The cost distinction between the two approaches is due to the conversion rate of the product. Due to the higher manufacturing cost, the selling price per cookie using process cost- ing will be $1.2. However, utilizing job costs, the sales price per cookie will be lower, as it will be $1.0. As a result of the investigation, job order costing appears to be less expensive than process costing. Part 3: Comparing and Contrasting Costing Methods The process of determining the cost of a product based on the manufacturing task is known as job costing. Managerial accounting keeps track of each job in the 4 3 4 2 3 6 3 5 5 7 5 5 3 5 8 9 7 2 3 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 3/10 Source Matches  (66) wikipedia 63 % Student paper 100 % product development cycle. It entails the creation of a product that is tailored to the needs of the customer. This method is used chie ci On the other hand, process costing is a way of calculating the production costs relying on the process that the product goes through (Stout, 2014). Until the end product is formed, the output of one stage becomes the input of the next. It’s an excellent way to ated in huge quantities will cost. Furthermore, the process is appropriate for large-scale production where the product must pass through numerous stages of manufacture (Garrison, 2020). According to (Garrison, 2020), both process and job costing approaches serve the same aim in a manufacturing organization. This goal is to Furthermore, the cost Above all, in the application of overhead expenses, both costing methodologies use standard overhead rates. 3 4 3 4 5 4 5 However, process and job costing methodologies di First, the job costing approach estimates costs for spe- ci As a result, the nature of the items created di Further- more, the cost assignment for the two costing systems di The cost of production is computed for each work in job costing. This means that in this method, the job is the cost center. On the other hand, in process, costing, the production cost is determined based on every cycle. The cost of each step is divided by the number of production units after it has been calculated. This means that the process is the cost center (Garrison, 2020). Additionally, the applicability of each strategy is dependent on the type of industry. Job costing is useful in sectors that produce items based on customer orders or speci As a result, the approach is unsuitable for the production of cookies. Furthermore, process costing is appropriate for Sweet Cookie Company because it is appropriate in sectors that manufac- ture products on a large scale (Grl Above everything else, the control strategies of the two systems di When it comes to job costing, each job is unique, but when it comes to process costing, the commodities lose their identity as the production process continues. Process costing will be the optimal costing method to utilize in the manufacturing of cookies for the business, as it has proved to be more e The aspect of cookie manufacturing is that it is a continuous process. The manufacturing process involves various steps, including preparing the dough, molding it, baking the cookies, bling, and packing the end product (Grl As a result, process costing is the best approach to use at the Sweet Cookies Company. Notably, the company concentrates on producing signi Furthermore, process costing is the most appropriate method for determining the unit cost in the cookie production process because the cookies produced are similar. Process costing is an approach that stimulates large-scale pro- duction of a product; thus it’s ideal in this scenario (Walther & Skousen, 2009). Part IV: Impact of Increase and Decrease in Sales With a rise in the number of units sold, a product’s income increases. The income of the business will increase as the quantity of cookies sold increases in this business plan. Because all cookies are the same price, selling one extra cookie boosts the company’s sales revenue (Stout, 2014). Reducing the amount of cookies sold, on the other hand, will result in lower sales revenue. In other words, a product’s total revenue is relative to the quantity of units sold. Conclu- sions and Recommendations Sweet Cookie Company is dedicated to creating one-of-a-kind, high-quality, and delectable chocolate chip cookies that appeal to the target market’s tastes and preferences. The company will concentrate on the development of chocolate chip cookies, which is its only product. As a result, the process costing approach will be applicable in this cookie production. The process is the most suitable for mass production of similar products on a wide scale. The analysis has clearly shown that the unit cost of the cookie is higher when using process costing than when using job costing. Job costing, on the other hand, is ine follows processes. As a result, the company should use process costing to estimate the product’s cost and sell it at a price that allows the company to break during the The business will amass pro Selling more units of the product will contribute to the company’s sales revenue growth. As a result, the company should implement robust product advertising in order to grow market share, which will result in higher sales revenues. It’s also how the business will get a good return on its investment. References Garrison, R. (2020). Managerial accounting. Mcgraw-hill US Higher Ed. Grl (2020). Costing Methods. Physiotherapy, 77(3), 187. https://doi.org/10.1016/s0031- 9406(10)61705-1 La Rocca, M. (2020). General management: imprenditorialità, business model e business plan (entrepreneurship, business modelling and business planning). SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3839364 Stout, D. (2014). Regression analysis: instructional resource for cost/managerial accounting. Accounting Education, 24(1), 57-73. https://doi.org/10.1080/09639284.2014.974197 5 4 5 3 4 5 4 7 4 3 10 4 7 4 7 4 5 4 7 4 5 3 5 3 1 Student paper Cost Accounting Project Original source “Review of Cost Accounting 2 Student paper Columbia Southern University Original source Columbia Southern University 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 4/10 Student paper 69 % Student paper 82 % Student paper 85 % Student paper 62 % Student paper 91 % wikipedia 63 % Student paper 66 % Student paper 90 % Student paper 90 % 3 Student paper Abstract Any start-up’s success is determined by the strategy outlined in the business plan. Original source Any start-success up’s is contingent upon the tactics outlined in the business plan 4 Student paper Sweet Cookie Company will be able to layout the stages of e idea with the help of a business plan. Original source Smith’s Cookie Company will be able to lay out the stages for e idea with the help of a business plan 3 Student paper Because cookie development is a process, the company will utilize process costing as its costing method. Original source Because cookie development is a process, the ing approach 2 Student paper Aside from that, the production will entail creating identical Chocolate Chips Cookies on a considerable scale. Original source about the Chocolate Chips Cookies identical units that will be used on a large scale 3 Student paper The unit cost per cookie will be $0.792 based on the system costing estimate, and the sale price will be $1.2 per cookie. Original source Based on the process costing estimate, the unit cost per cookie will be $0.792, and the selling price will be $1.2 per cookie 1 Student paper Cost Accounting Project Original source “Review of Cost Accounting 4 Student paper Introduction When it comes to turning a concept into a product, an entrepreneur must create a solid business strategy or plan. Original source An entrepreneur must have a strong business strategy when it comes to converting a no- tion into a product 4 Student paper It creates a platform for an investor to implement important initiatives, ranging from de- termining the best source of funding to selecting the organization. Original source It creates a platform for an investor to implement essential initiatives, ranging from de- termining the best source of funding to determining the organization 4 Student paper Sweetie Cookie Company is a new business endeavor that will cater to cookie lovers’ Original source Smith’s Cookie Company is a new business endeavor that will cater to cookie lovers’ 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 5/10 Student paper 100 % Student paper 93 % Student paper 86 % Student paper 81 % Student paper 71 % Student paper 63 % Student paper 70 % Student paper 79 % Student paper 79 % 4 Student paper In the United States, the cookie market is currently growing. Original source In the United States, the cookie market is currently growing 4 Student paper Young adults and teenagers between the ages of 18 and 24 will be the business’s target market. The location of the company and its mission statement will also be covered in the document. Original source The company’s target market will be teenagers and young adults between the ages of 18 and 24 The location of the company and its mission statement will be covered in the document 3 Student paper In addition, the paper will calculate the cost and sales per cookie using both job order and process costing methods. Original source Additionally, the paper will calculate the cost and sales per cookie using both work order and process costing methods 4 Student paper Furthermore, the report will analyze and contrast the two costing methodologies and re- commend which is best for Sweet Cookie Company’s cookie development. Original source Furthermore, the report will analyze and contrast the two costing techniques and pro- pose which is best for Smith’s Cookie Company’s cookie development 5 Student paper Establishing a Cookie Business Original source Part 1 establishing cookie business 4 Student paper Sweet Cookie Company will be a start-up company based in San Francisco, California. Original source Smith’s Cookie Company will be a start-up company based in Baton Rouge, LA 3 Student paper The Sweet Cookie Company will focus on manufacturing Chocolate Chip Cookies. Original source focus will be on Chocolate Chip Cookies 4 Student paper The company’s mission statement will be to provide one-of-a-kind, high-quality cookies made with fresh, natural ingredients that have a delectable taste. The cookies will be available at a reasonable price to ful who are in the moderate to upper-income classes. Original source The company’s mission statement will be to provide one-of-a-kind, high-quality cookies with a delightful taste that are produced with fresh organic ingredients The cookies will be available at a reasonable price to satisfy the needs of people in the Baton Rouge re- gion who are in the moderate to upper income groups 2 Student paper Develop Costing and Sales Information Costs Charged per Job Current Month Cost Summary Original source “Costs Charged per Job Current Month Cost Summary 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 6/10 Student paper 100 % Student paper 66 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % 3 Student paper Direct Materials $150 $150 Direct Labor $320 $320 Original source Direct Materials $150 $150 Direct Labor $320 $320 6 Student paper Overhead (30% of direct Original source overhead is 30% of labor 3 Student paper Total $566 $566 Original source Total $566 $566 5 Student paper Units Completed ÷ 1000 Product Unit Cost Original source Units Completed ÷ 1000 Product Unit Cost 5 Student paper Sales Estimate per unit Original source Sales Estimate per unit 7 Student paper Process Cost Estimation Original source Process Cost Estimation 5 Student paper 150 Conversion to Finished goods (40%) Original source 150 Conversion to Finished goods (40%) 5 Student paper Abnormal gain 126 Original source Abnormal gain 126 3 Student paper Cost per Unit Original source Cost Per Unit 5 Student paper Sales price per cookie Original source Sales price per cookie 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 7/10 Student paper 72 % Student paper 76 % Student paper 78 % Student paper 81 % Student paper 64 % Student paper 83 % Student paper 67 % Student paper 63 % Student paper 69 % 8 Student paper According to the calculations, the cost per cookie for job order costing is lesser than the price per cookie for the process costing. Original source The cost per cookie for the job order costing is less than the costing process 9 Student paper The cost distinction between the two approaches is due to the conversion rate of the product. Original source The reason due to conversion rate of the product brings about the cost di between the two approaches 7 Student paper Due to the higher manufacturing cost, the selling price per cookie using process costing will be $1.2. However, utilizing job costs, the sales price per cookie will be lower, as it will be $1.0. Original source The sales price per cookie using process cost will be $1.2 for process costing due to the increased cost of production However, the sales price per cookie using the job costs will be lower at $1.0 2 Student paper Comparing and Contrasting Costing Methods Original source Part 3 Comparing and Contrasting Costing Methods 3 Student paper The process of determining the cost of a product based on the manufacturing task is known as job costing. Original source On the other hand, process costing is a technique for determining the cost of manufac- turing based on the steps taken to create the product 3 Student paper It entails the creation of a product that is tailored to the needs of the customer. Original source It entails the creation of a product that is tailored to the speci 4 Student paper On the other hand, process costing is a way of calculating the production costs relying on the process that the product goes through (Stout, 2014). Until the end product is formed, the output of one stage becomes the input of the next. Original source Process costing, on the other hand, is a way of determining production costs based on a product’s manufacturing process The output of one step becomes the input of the next until the 3 Student paper Furthermore, the process is appropriate for large-scale production where the product must pass through numerous stages of manufacture (Garrison, 2020). Original source Additionally, the process is appropriate for large-scale production because the product must pass through many stages of manufacturing (Walther & Skousen, 2009) 4 Student paper According to (Garrison, 2020), both process and job costing approaches serve the same aim in a manufacturing organization. Original source In a manufacturing company, both job and process costing approaches are used to achieve the same aim 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 8/10 Student paper 77 % Student paper 75 % Student paper 84 % Student paper 62 % Student paper 100 % Student paper 66 % Student paper 78 % Student paper 74 % Student paper 86 % 5 Student paper This goal is to Original source The aim of this project is to commodity 4 Student paper Furthermore, the cost Original source Furthermore, both costing approaches have comparable cost 5 Student paper Above all, in the application of overhead expenses, both costing methodologies use standard overhead rates. Original source Above everything, in the application of overhead expenses, both costing approaches use standard overhead rates 5 Student paper First, the job costing approach estimates costs for speci is used to produce standardized products. Original source First, the work costing approach is used to estimate costs for speci cedure costing is used to produce generic products 4 Student paper As a result, the nature of the items created di Original source As a result, the nature of the items created di 5 Student paper Furthermore, the cost assignment for the two costing systems di Original source Furthermore, the expense assignment di 3 Student paper The cost of production is computed for each work in job costing. This means that in this method, the job is the cost center. On the other hand, in process, costing, the production cost is determined based on every cycle. Original source The cost of production is determined for each work in job costing This means that under this paradigm, the job is the cost center In process costing, on the other hand, the pro- duction cost is determined for each process 4 Student paper The cost of each step is divided by the number of production units after it has been calculated. Original source After the cost of each operation has been computed, it is divided by the number of units produced 5 Student paper As a result, the approach is unsuitable for the production of cookies. Original source As a result, the process is unsuitable for the production of cookies 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2& … 9/10 Student paper 80 % Student paper 64 % Student paper 67 % Student paper 75 % Student paper 100 % Student paper 100 % Student paper 81 % Student paper 69 % Student paper 75 % 4 Student paper When it comes to job costing, each job is unique, but when it comes to process costing, the commodities lose their identity as the production process continues. Original source When it comes to job costing, each task is unique, but when it comes to process costing, the products lose their uniqueness as the development process continues 7 Student paper The manufacturing process involves various steps, including preparing the dough, mold- ing it, baking the cookies, Original source Its manufacturing is done in various steps which include making dough, molding it, bak- ing the cookies, 4 Student paper As a result, process costing is the best approach to use at the Sweet Cookies Company. Original source As a result, for the Smith’s Cookies Company, process costing is the ideal approach to utilize 3 Student paper Furthermore, process costing is the most appropriate method for determining the unit cost in the cookie production process because the cookies produced are similar. Original source Additionally, since the cookies are similar, process costing is the most practical approach for determining the cost of each unit produced throughout the cookie production process 10 Student paper Impact of Increase and Decrease in Sales Original source Impact of Increase and Decrease in Sales 4 Student paper With a rise in the number of units sold, a product’s income increases. Original source With a rise in the number of units sold, a product’s income increases 7 Student paper The income of the business will increase as the quantity of cookies sold increases in this business plan. Original source In this business plan, the revenues of the business will increase as the number of cookies sold increases 4 Student paper Because all cookies are the same price, selling one extra cookie boosts the company’s sales revenue (Stout, 2014). Original source Because all cookies are the same price, selling one more increases the company’s revenue 7 Student paper Reducing the amount of cookies sold, on the other hand, will result in lower sales revenue. Original source On the other hand, reducing the number of cookies sold will lead to a decrease in sales revenue 7/14/2021 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=d700710e-5972-4fa8-a1f2-9dbaeaabffe2 … 10/10 Student paper 100 % Student paper 76 % Student paper 70 % Student paper 72 % Student paper 85 % Student paper 65 % Student paper 75 % Student paper 73 % Student paper 66 % 4 Student paper Conclusions and Recommendations Original source Conclusions and Recommendations 5 Student paper Sweet Cookie Company is dedicated to creating one-of-a-kind, high-quality, and delect- able chocolate chip cookies that appeal to the target market’s tastes and preferences. The company will concentrate on the development of chocolate chip cookies, which is its only product. Original source Beta Cookies Manufacturing is dedicated to creating one-of-a-kind, high-quality, and de- lectable chocolate chip cookies that appeal to the target market’s tastes and preferences As the only commodity, the company would concentrate on the production of chocolate chip cookies 4 Student paper As a result, the process costing approach will be applicable in this cookie production. Original source As a consequence, the approach to process costing for cookie production will be suitable 7 Student paper The analysis has clearly shown that the unit cost of the cookie is higher when using pro- cess costing than when using job costing. Original source Although the analysis indicates that the unit cost for the cookie is higher when using a process costing as compared to job costing 4 Student paper Job costing, on the other hand, is ine As a res- ult, the company should use process costing to estimate the product’s cost and sell it at a price that allows the company to break during the Original source On the other side, job costing is useless since the product follows processes As a result, the company should use process costing to estimate the product’s cost and sell it at a price that allows it to break even in the 5 Student paper The business will amass pro $1.2. Original source The company would make a pro $1.2 each cookie 3 Student paper Selling more units of the product will contribute to the company’s sales revenue growth. Original source Selling additional units of the product will contribute to the business’s revenue growth 5 Student paper As a result, the company should implement robust product advertising in order to grow market share, which will result in higher sales revenues. It’s also how the business will get a good return on its investment. Original source As a consequence, the company can promote vigorous product marketing in order to raise market share, which would result in higher sales revenues It’s also how the business can get a good return on its expenditure 3 Student paper instructional resource for cost/managerial accounting. Original source Managerial and Cost Accounting

Writerbay.net

Everyone needs a little help with academic work from time to time. Hire the best essay writing professionals working for us today!

Get a 15% discount for your first order


Order a Similar Paper Order a Different Paper