project - AC2720 Project PROJECT COST ACCOUNTINGMIXED BAG...

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AC2720 Project 1 PROJECT: COST ACCOUNTING MIXED BAG Project Introduction: In this project, you will be required to attempt a number of problems. The concepts, including cost-volume- profit (CVP) analysis, decision making, job costing with focus on service industry, and budgeting, and flexible budget variances will be applied in separate problems. The project includes four different scenarios. Using four fictitious companies, you will be put into these scenarios as an employee of the respective companies and asked to work on complex managerial accounting problems. The problems are testing your knowledge in the concepts taught in this course. Course Learning Objectives Covered: Analyze how cost accounting supports management. Make decisions using cost-volume-profit (CVP) analysis. Evaluate the methods to accurately determine job costs. Evaluate the advantages of a budget in managing operations and developing a strategic plan. Compute price variances and efficiency variances for direct-cost categories. Analyze variable and fixed overhead cost variances. Analyze inventory costing and denominator-level capacity concepts. Analyze relevant financial information for making business decisions. PROJECT SUBMISSION PLAN Description/Requirements of Project Evaluation Criteria Assessment Preparation Checklist: To prepare for this project, you should: Go through the Module 5 lesson that presents the important points that you need to consider before submitting the project. Did you solve all the problems correctly? Did you show step-by-step
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AC2720 Project 2 Description/Requirements of Project Evaluation Criteria To recapitulate the important concepts required for doing the project, review the following pages from your textbook, Cost Accounting: A Managerial Emphasis : o Chapter 1, pp. 2 19 o Chapter 2, pp. 28 51 o Chapter 3, pp. 66 89 o Chapter 4, pp. 106 136 o Chapter 5, pp. 150 177 o Chapter 6, pp. 196 223 o Chapter 7, pp. 248 267 o Chapter 8, pp. 288 314 Title: Cost Accounting Mixed Bag Problem 1: AquaPure produces two models of water filters. Model 1 attaches to the faucet and cleans all water that passes through the faucet. This model is sold for $80 and has variable costs of $20. Model 2 is a pitcher-cum-filter that only purifies water meant for drinking. This model is sold for $90 and has variable costs of $25. AquaPure sells two faucet models for every three pitchers sold. Fixed costs equal $945,000. Tasks: What is the break-even point in unit sales and dollars for each type of filter at the current sales mix? AquaPure is considering buying new production equipment. The new equipment will increase fixed cost by $181,400 per year and will decrease the variable cost of the faucet and the pitcher units by $5 and $9 respectively. Assuming the same sales mix, how many of each type of filter does AquaPure need to sell to break even?
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