Madeup of2 parts this assignment is meant to fulfill a numberof objectives foryou. Theseinclude:
1)Test and apply your knowledgeof theconceptsof managerial accounting.
2)Increaseyour experience andabilitieswith respect to report writing.
3)Illustrate scenarios and issuesyou willfacein the “real world.”
4)Provide for anadditional method of evaluationofyour knowledgeand skills ratherthan thetraditionalquizzes andtests.
Pleasetake allparts of this assignment seriously.This is an opportunityto actuallyapply yourknowledgeratherthan justmemorizeatextbook.
Pleasepreparetheassignment usingeither Word or Excel ratherthan byhand. The finished product will look moreprofessional as wellas create some consistencybetween submissions.
All submissions must be on 8 1/2 by11 inch paperusingasize12 font. Grammar and spellingareveryimportant and marks will be deducted forpoorgrammar and spelling.
Forthe memos, pleaseuseamemoformat. Examples of this can be found in Word. Write in a form that is understandable and answers the client’s question.
In order to makethis assignment easier andyour resultmoresuccessfulwesuggest that you do not leavethis assignment to thelastdayoreven week. Theassignment parts are constructed to coincidewith thetopics thathavebeen or willbe covered in class.Ifyou begin workingon the assignment immediatelythen asyour lectures/seminars progress you willbeimmediatelyreinforcingthecoursecontent thatyou arebeing exposedto and itwillmake application ofthat content easier as well.
The2 parts oftheassignmentareworth atotal of12%ofyour finalgradeand therefore each part will haveasignificant effect onyourfinal lettergrade. Making asubmission on time even if incomplete,willbemoretoyour benefit than givingup and not makingany submission at all.
ImportantNotesRegardingStudentConduct
Each part ofthis assignment is anindividual assignment. All submissions arerequired to beyour own wordsand calculations. Whileitisrecognized that students maydiscuss concepts and ideas each student is required to construct their own response.You are
notallowedto share/exchangeyourwrittenanswers or computations with others. Otherwise, you will bereported for cheating.Inthe event that theresponsesprepared
byindividual students appear to bethe same orhighlysimilar theinstructor will consider referringthe students to the Facultyof Management AcademicMisconduct Committee
for consideration.
Plagiarism
Plagiarismrefers to thepracticeof presentingthewords of another author(it may beatext writeror another student) asyour own. This is not permitted. At times you willbe asked to learn about anddiscuss theviews or theories of others. This should bedonewith appropriate acknowledgement of sourcematerials. Inother words,youmust referenceyour work. Acknowledgeyour sources– both direct and indirect quotes– within-text citations. Refer to theReferencingsection contained below for further information.
AcademicConductViolations
Anyviolation oftherules of AcademicConduct as described abovewillresultin the immediate confiscation of allrelated materialsof allparties involved.In addition, all parties willbeimmediatelyreportedto the Facultyof Management AcademicMisconduct Committee for consideration of furtheractions including (but not limited to) receivingazeroforthe submission, a failurein the course and the possibilityof suspension or expulsion.
Breaking BreadBakery
Your Role
While youbelieve youare studentscurrentlytaking Accounting, forthe purposesof thisassignmentyouare doingyour internshipwithNicole Quarterman, whohasjustbeenhiredasBreaking Bread Bakery’s new controller. Nicole wantsyoutoworkwithhertohelpherin fulfillingher dutiesinthe comingfew months.She expectsthisengagementtoinclude writingmemos,performingquantitative andqualitative analysisaswellas providingconclusionsor recommendationsforAndyGriff,the chief executiveofficerandfounderof Breaking Bread Bakery.Atalltimes, work submittedbyyoumustbe professionalbothintermsof contentaswellas presentation. Thisisnothighschooloruniversitybut rather therealworld. Dothe workasif your jobdependsonit, becauseitdoes!!
Breaking Bread Bakery (BBB)
Breaking Bread Bakery (BBB) isamedium-sizedregionalbakerythat specializesinprovidingorderstogroceryandconveniencestores.Because of thepopularityof itsbrand, ithasalsoopenedasmallcafé forwalk-in business.
Inordertomaintainitshighqualitystandard,BBBproducesonlythree products:breakfastmuffins,freshbread,andchocolate chipcookies. Althoughbusinesshasbeengoodinthepastfewyears,a luckycontractwith a large chainhasrecentlyallowedittoexpanditsbrandoutof the local region. Growthhasbeenhigh since the newcontractwentintoeffect.
AndyGriff,the chiefexecutiveofficer (CEO) andfounder,hasarrangeda meetingwithaventure capitalfirmnextmonth. Hopefullythe meetingwill resultinthesale ofsome ofMBB’s stockandanopportunitytoestablisha significantlineof creditwiththe venturecapitalfirm.
These extra funds,ifAndycansecure them,shouldprovidesufficientmoney tomeetBBB’s growthtargetsforthe nextfewyears.Intypicalmanagerial style, Andyimmediatelyassignedthe taskof preparingalltheventure
capitalfirm’srequestsanddemandstoNicole Quarterman, whohasjust beenhiredasBBB’snew controller.
Meetingwith theCEO(September17,2015)
“Welcometoour company,” Andygreeted.
“Thank youfor trustingmewiththis importantjob,” Nicolereplied.
“Theventure capitalfirm’s assessmentteam has askedmetoprovideaformal incomestatementaccompaniedwith appropriatesupportingschedulesofcostof goods manufactured andcostofgoodssoldfor thelastquarter ending September 30th.Doyou think youcould have this donebyOctober11th?” Andy asked.
“Sure,”Nicolesaid.“Sincethis projectismyfirst assignment,I will start by making appointmentswith eachofthe divisional managers togather information andalsotolearnmoreaboutthecompany.I amconfidentwith thehelpofthe intern Iwill beabletodeliver on time.”
“Goodluck!And pleaseletmeknowifyouneedmyhelp,” Andyconcluded.
Meetingwith theSalesDepartment (October 1st,2015)
Walkingdown thehallwaytowards theoffice ofJeffBarza,thesalesmanager, Nicolereadtheresultsfor last quarter.MalasipinaBunsBakerysold45,000one- dozen packages ofmuffinsfor$5.50each,65,000one-dozenpackages of cookiesfor $4.75each, and85,000loaves of breadfor $5.25each.WhenNicole gottoJeff’s office,hemotionedher in tohaveaseat.
“Is it timeforour meetingalready?” he asked.“Wheredoes thedaygo?”
“Whoknows? Itseemslike oneminute I’mhavingmymorningmuffinandthe nextI’msaying good-bye to everyone,” Nicolesaidwithasigh.“There’s never timetogeteverythingdone.Doyouhaveacopyoflastquarter’s results?”
“Yes,right here somewhere,” Jeffsaid,shufflingpapers aroundonhis desk.“Got it!” he exclaimed,wavingitgentlyas hepulleditfromunder astackofother papers. “Now,what doyouwanttoknowexactly?”
“ThenIhaveonlytwomore questions.Whatwere total salesduringthesecond andthirdquartersoftheyear 2015,andare westill collectinganyofthat money?”
Jeffpulledupafile.“Total sales were $802,000and$1,002,500,respectively, andwe are stillcollecting quitea bitofthatmoneybasedonour collection breakdown.”
“I thinkthatdoes it,then.IfI’ve forgottensomething,I’llcomebackandbugyou later. It’smorefun tointerruptyouseveral times anyway.Andyouoweme one now.
Meetingwith theProductionDepartment
Nicolesighed as she headedtoher meeting with PhilenMainster,BBB’s head chef.ShehadmetPhilenbefore,sosheknewthatit was goingtobe an interestingmeeting.
As shehadsuspected,shefoundPhilenin the bakeryinstead of his office.
“Philen,” shecalledasshehurried towards him,“did youforgetourmeeting?”
“Me,forget?” Philen askedinasurprisedvoice.“I never forget anything!”
Nicole hadtochuckleatthelargestreak offlouracross hisface.“Yousaid youwanted toseeour productionfacility, and I’mreadytoshowittoyou.”
Nicoleshookherhead.“No, Philen.Ididn’t sayIwantedtoseetheproduction facility;IsaidIwantedto talktoyouabouttheproductioncosts andinventories.”
“Oh,ofcourse you did.” Philen’s roundface hadturnedadeeper shade of pink. “Thenwhydon’t wego tomyofficeandtalk?”
Nicolesighed.“That’sagreatidea,Philen.”
As theysatdown,Nicole asked herfirstquestion.“Okay,Philen,Ineedtoknow
howmuchinventorywekeeponhand.”
“Well, wecan’t keep muchinthewayoffinishedgoodsonhand.Mycookiesand breadwoulddryoutifwekeptthem toolong.I’dsaythatwe normallykeep only abouttwo days’ worthofinventoryonhandtoavoidshippingissuesor problems with thecafé.”
“Okay, andyoumakeyour estimates basedona90-dayquarter?”
Philennoddedimpatiently.“Please,Nicole, don’t askobvious questions.”
“I’msorry. Let’s talkaboutyour pantry.You takecareofpurchasing too,don’t you?”
“Yessirree.We decideditwould beeasierformetorunpurchasing thantohave
aseparatemanagerdoit.After all,Ido everythingelse aroundhere.”
“Well, wewantit doneright.”
Philenchuckled.“I’ll have toremember that one.Marthawill loveit. Okay,let’s talk rawmaterials.Somedays we have to producealottomeetourorders, soI normallytrytokeep15percentofthenextquarter’s rawmaterials on handatall times.”
“Is that whatwe’vegot onhandnowfor thecomingquarter?”
“Ofcourse.Jeff andI had
