mba642 problem1 template

mba642 problem1 template - Problem 1 Due June 21 11:59 pm...

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Problem 1 The problem relates to material covered in Chapter 2. Please post generic questions to the discussion board or Due June 21 11:59 pm central e-mail me if you have a specific question or unsure if it should be posted to the discussion board. Send your completed problem by uploading your solution into the problem 1 assignment area in #2 of this assignment area. Make sure you type in your name in cell A3 and save your file with the first initial of your first name, last name, and title of problem-jstevensproblem1.xls The problem solution is worth a total of 10 pts. I will take off 5 pts. if you do not use the excel application appropriately. You need to use only cell references on the 2 statements you are developing. Please feel free to ask questions over this problem or any other material from chapter 2. You should use this sheet as your data field and reference these cells on this worksheet in development of your COGM statement and Income statement. You should always verify that your problem has been loaded correctly by either going back to the assignment and clicking on Ok and you should see the file you uploaded and you can also go to view grades and click on Water Company was organized on January 1 of the current year. After 5 months of start-up losses, management expected to earn a profit during May, the most recent month. Management was disappointed when the income statement for May showed that losses were still being realized by the company. May's income statement follows: Ice Company Income Statement For the Month Ended May 31 Sales $312,000 Less operating expenses: $178,000 Insurance Expense(see #2 below) 7,000 Rent on facilities (see #1 below) 6,000 Selling Salaries Expense 12,000 Depreciation, sales equipment 3,000 Utilities Expense(see #3 below) 5,000 Indirect factory labor 4,000 Direct factory labor 46,000 Depreciation, factory equipment 3,000 Maintenance, factory 11,000 Advertising Expense 13,000 Adminstrative supplies used 1,000 Administrative Salaries Expense 25,000 314,000 Net loss ($2,000) Management was sure that the company would turn a profit by now. It has come to their attention that the person who prepared the income statement did not understand how a manufacturing operation works. Therefore, this person had not factored in the following information. 1. The building rental is used by all areas of operations as follows: 76% Rent of facilities applies to factory operation 24% Rent of facilities applies to selling and administration operation 2. Insurance is used by all areas of operations as follows: 70% Insurance of facilities applies to factory operation 30% Insurance of facilities applies to selling and administration operation 3. The building utilities is used by all areas of operations as follows: 82% Utilities of facilities applies to factory operation 18% Utilities of facilities applies to selling and administration operation 4. Inventory balances at the beginning and end of the month were as follows: 05/1/20XX 05/31/20XX
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mba642 problem1 template - Problem 1 Due June 21 11:59 pm...

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