Applying Managerial Accounting Concepts using EXCEL

Part 1 – Discussion

The value chain includes costs from research to product design, to production, to marketing and sales, to distribution, and to customer support after the sale. Which areas of the value chain do you think should be included in calculating product costs and why? Where would the other costs be reported, if at all?

Embed course material concepts, principles, and theories (requires supporting citations) along with at least one scholarly, peer-reviewed reference in supporting your answer

 Part 2 – Critical thinkin

Applying Managerial Accounting Concepts to the Manufacturing Industry

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements. (All amounts in SAR except units.)

Given the following information for Dorttmund Corporation:

Advertising costs                              320,000

Office rent                                          240,000

Direct materials                                800,000

Delivery vehicle depreciation      90,000

Factory repair and maintenance 420,000

Sales salary                                         510,000

Indirect labor                                     220,000

Manufacturing equipment depreciation 180,000

Administrative salaries                   360,000

President’s salary                             700,000

Sales revenue                                   5,200,000

Indirect materials                             190,000

Direct labor                                         1,500,000

Machine hours                                  2,000

Direct Labor hours                           10,000

Machine hours per unit                                 3

Direct labor hours per unit           6

Direct materials per unit                               ?

Units manufactured                       500

Units sold                                            350

Identify (list) and total period costs

Calculate overhead per unit based on machine hours

Calculate total product costs for units manufactured

Calculate total cost of goods sold

Prepare income statement in good form assuming no beginning inventory

You must show all your work for credit.

Notes:

• Rubric attached.
• Course name is: Managerial Accounting ( WARREN / TAYLER 15 )