• Executive Summary - Explain what you will examine in the...

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HRM732 - Introduction to Financial & Management Accounting Case #2 - Due June 22, 2022 (Worth 10%) Team Members Notification (changes only) - June 8, 2022 Hyatt Manufacturing Inc. manufactures paper plates which it sells to wholesalers and retailers. The financial information for August 31, 2021, is provided below. Raw Materials, August 1, 2021 $25,000 Work-in-Process, August 1, 2021 $2,000 Finished Goods, August 1, 2021 13,000 Administrative Expense 8,000 Direct labour 5,000 Selling Expense 22,000 Raw Material Purchases 0,000 Production Supervisor's Salary $5,000 Utilities, Factory 2,000 Insurance Factory 8,000 Raw Materials, August 31, 2021 4,000 Work-in-Process, August 31, 2021 1,000 Finished Goods, August 31, 2021 28,000 Sales Revenue 220,000 The accountant, who recently graduated from a college with a diploma in accounting, prepared the Income Statement below. Hyatt Manufacturing Inc. Income Statement Month ended August 31, 2021 Sales Revenue $220,000 Less Expenses: Administrative Expense $18,000 Direct labour 5,000 Selling Expense 22,000 Raw Material Purchases 50,000 Production Supervisor's Salary $5,000 Utilities, Factory 2,000 Insurance Factory 8,000 Total Expense $160,000 Net Income $60,000 Page 1 of 3 This result was shared with the Production Manager, who was very excited to see this level of net income and proudly shred the results with the rest of the management team. However, the Human Resources Manager who did an accounting course in his post graduate certification, questioned the report. Required: a) Do you agree with the Human Resources Manager? Explain the issues with the report. b) Prepare the correct report. Note: A spreadsheet or word format is acceptable for this assignment and no report is required. Page 2 of 3

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• Executive Summary - Explain what you will examine in the case. 

 

• Findings - Provide background information and the most relevant facts. Isolate the issues. 

 

• Case Evaluation - Isolate the sections of the study you want to focus on. In it, explain why something is working or is not working. 

 

• Proposed Solutions - Offer realistic ways to solve what isn't working or how to improve its current condition.