PART 1: In this section of the report, your job is to explain cost accounting and what skills you can bring to the company. The CFO feels you should include an overview of what cost management is and some of its applications. Be sure to discuss the opportunities available in the cost accounting and how it relates to corporate strategy. This section of your report should be approximately two pages in length. PART 2: In this section of the report, you are asked to classify the product costs for the production of toka balls. Classify each cost as: · fixed or variable · direct or indirect Complete the table and include it in your report. The management team will require justification for each cost (i.e. why you classified the costs as you did).         Product Cost Variable Fixed Direct Indirect         Electricity         Real Estate Taxes   Wood for toka sticks         Leather to tie wood together         Manufacturing Labor         Water         Lubricants for Machinery         Equipment depreciation Use Microsoft Excel to calculate your answers for Parts 3 and 4 and cut and paste the calculations from Excel into your report to show your work. PART 3: The third section of the report should contain your computations for the month of July based on the information given below. The following information is available for a GFI division that produces electronic scoreboards. These are special order products that use a job order cost accounting system. The management team wants to see your calculations in your responses. June 30 July 31 Inventories       Raw materials 62,000 75,000       Goods in process 85,000 95,000        Finished goods 103,000 58,000 Activities and information for July      Raw materials purchases by cash 510,000      Factory payroll by cash 745,000      Factory overhead      Indirect materials 24,000       Indirect labor 132,000       Other overhead costs 220,000 Sales in cash 3,500,000 Predetermined overhead rate based on direct labor cost 52% Compute the following amounts for the month of July. 1. Cost of direct materials used. 2. Cost of direct labor used 3. Cost of goods manufactured. 4. Cost of goods sold. (Do not consider any underapplied or overapplied overhead.) 5. Gross profit. 6. Overapplied or underapplied overhead. PART 4: In the last section of the report, the management team would like to know the profits they can expect from the two models of pitching machines they currently manufacture. The softball pitching machine and the hardball machine make up the entire product line. To help determine the profit of each individual product, the CFO wants overheads to be allocated back to the products. Total inspection costs are $40,000. The estimated production budget is as follows. Softball pitching machine Units 20 units Direct labor hours per unit 200 hours per unit Number of inspections 5 per unit Hardball pitching machine Units 20 units Direct labor hours per unit 2.

1. PART 1: In this section of the report, your job is to explain cost
accounting and what skills you can bring to the company. The
CFO feels you should include an overview of what cost
management is and some of its applications. Be sure to discuss
the opportunities available in the cost accounting and how it
relates to corporate strategy. This section of your report should
be approximately two pages in length.
PART 2: In this section of the report, you are asked to classify
the product costs for the production of toka balls. Classify each
cost as:
· fixed or variable
· direct or indirect
Complete the table and include it in your report. The
management team will require justification for each cost (i.e.
why you classified the costs as you did).
Product Cost
Variable
Fixed
Direct
Indirect
Electricity
Real Estate Taxes
Wood for toka sticks

2. Leather to tie wood together
Manufacturing Labor
Water
Lubricants for Machinery
Equipment depreciation
Use Microsoft Excel to calculate your answers for Parts 3 and 4
and cut and paste the calculations from Excel into your report to
show your work.
PART 3: The third section of the report should contain your
computations for the month of July based on the information
given below. The following information is available for a GFI
division that produces electronic scoreboards. These are special
order products that use a job order cost accounting system. The
management team wants to see your calculations in your

3. responses.
June 30
July 31
Inventories
Raw materials
62,000
75,000
Goods in process
85,000
95,000
Finished goods
103,000
58,000
Activities and information for July
Raw materials purchases by cash
510,000
Factory payroll by cash
745,000
Factory overhead
Indirect materials
24,000
Indirect labor

4. 132,000
Other overhead costs
220,000
Sales in cash
3,500,000
Predetermined overhead rate based on direct labor cost
52%
Compute the following amounts for the month of July.
1. Cost of direct materials used.
2. Cost of direct labor used
3. Cost of goods manufactured.
4. Cost of goods sold. (Do not consider any underapplied or
overapplied overhead.)
5. Gross profit.
6. Overapplied or underapplied overhead.
PART 4: In the last section of the report, the management team
would like to know the profits they can expect from the two
models of pitching machines they currently manufacture. The
softball pitching machine and the hardball machine make up the
entire product line. To help determine the profit of each
individual product, the CFO wants overheads to be allocated
back to the products. Total inspection costs are $40,000.
The estimated production budget is as follows.
Softball pitching machine
Units
20 units
Direct labor hours per unit
200 hours per unit
Number of inspections
5 per unit
Hardball pitching machine
Units

5. 20 units
Direct labor hours per unit
200 hours per unit
Number of inspections
15 per unit
1. Under a costing system that uses direct labor hours as a
driver for the allocation, how much of the inspection costs
would be allocated to softball machine?
2. Repeat the same question for hardball machine.
3. Using ABC and the number of inspections as a driver for
allocation, recalculate the allocation for the softball machine.
4. Repeat the activity mentioned in question 3 for hardball
machine.
You know that your report will be shared with senior level
managers and eventually to the board of directors. However,
you are uncertain whether or not you will be allowed to present
your work at a later time or in a different manner. Therefore it
is important that your report is well written, professional,
includes an introduction and a conclusion, and follows APA
standards.
PART 1:
In this section of the report, your job is to explain cost
accounting
and what skills you can bring to the company. The CFO feels
you should
include an overview of what cost management is and some of its
applications.
Be sure to discuss the opportunities a
vailable in the cost accounting and how
it relates to corporate strategy. This section of your report
should be
approximately two pages in length.

6. PART 2:
In this section of the report, you are asked to classify the
product
costs for the production of toka
balls. Classify each cost as:
·
fixed or variable
·
direct or indirect
Complete the table and include it in your report. The
management team will
require justification for each cost (i.e. why you classified the
costs as you
did).
Product Cost
Variable
Fixed

7. Direct
Indirect
Electricity
Real Estate Taxes
Wood for toka sticks

8. Leather to tie wood together
Manufacturing Labor
Water

9. Lubricants for Machinery
Equipment depreciation
Use Microsoft Excel to calculate your answers for Parts 3 and 4
and cut
and paste the calculations from Excel into your report to show
your
work.
PART 3:
The third section of the report should contain your computations
for the month of July based on the information given below. The
following
information is available for a GFI division that produces
electronic

10. scoreboards. These are special order products th
at use a job order cost
PART 1: In this section of the report, your job is to explain cost
accounting
and what skills you can bring to the company. The CFO feels
you should
include an overview of what cost management is and some of its
applications.
Be sure to discuss the opportunities available in the cost
accounting and how
it relates to corporate strategy. This section of your report
should be
approximately two pages in length.
PART 2: In this section of the report, you are asked to classify
the product
costs for the production of toka balls. Classify each cost as:
Complete the table and include it in your report. The
management team will
require justification for each cost (i.e. why you classified the
costs as you
did).
Product Cost Variable Fixed Direct Indirect
Electricity
Real Estate Taxes
Wood for toka sticks
Leather to tie wood together
Manufacturing Labor
Water
Lubricants for Machinery
Equipment depreciation
Use Microsoft Excel to calculate your answers for Parts 3 and 4
and cut
and paste the calculations from Excel into your report to show
your

11. work.
PART 3: The third section of the report should contain your
computations
for the month of July based on the information given below. The
following
information is available for a GFI division that produces
electronic
scoreboards. These are special order products that use a job
order cost