A Managerial Accounting Project: Gatsby Manufacturing, Inc.

1st Edition
Guess and Convery

This project is an integrative case that provides hands-on exposure to a job costing system for a mid-sized manufacturing company and includes six active-learning assignments. Students will:

• prepare and trace source documents
• record transactions in job cost records
• reconcile inventory and overhead control accounts
• prepare financial statements

Students can journalize and post transactions to an accounting information system and/or build on this information to address “what if” managerial questions about variable costing, alternative overhead drivers, budgeting for operations, variances, capital expenditures, and internal controls. Students will “learn by doing.” A convenient envelope holds two components of the project:

• Booklet—with background material, assignments with questions and problems, core concept reviews, journal and ledger pages, and financial statement templates
• Documents folder—with divider tabs for filing the source documents into the following categories: accounting, job cost sheets, to/from outsiders, and financial statements

Pick and choose, some or all, from six student assignments with relatable, real-world examples to engage students’ interest. Each assignment comes in manual or Excel options, as well as alternate solution versions. Students can submit answers to homework online, as well as upload Excel files. Armond Dalton’s website automatically grades answers and easily exports to a course management system.

 An overview of assignments with related Core Concept Reviews that serve as a quick reference of the underlying concepts developed in principles of managerial accounting textbooks.

Assignment 1: Reconcile manufacturing-related inventory accounts with job cost sheets and trace transactions through source documents to job cost sheets.

Core Concept Reviews:

* Job-Order Costing

* Product and Period Costs

* Applying Manufacturing Overhead

* Source Documents and Internal Controls

Assignment 2: Record cost accounting information into the General Journal and General Ledger.

Core Concept Reviews:

* Accounting Cycle

* Adjusting Journal Entries

* Closing Journal Entries

Assignment 3: Prepare financial statements for a manufacturing company at the end of a year.

Core Concept Reviews:

* General Ledger

* Financial Statements

Assignment 4: Contrast different costing systems related to overhead and overhead drivers for multi-product companies.

Core Concept Reviews:

* Fixed and Variable Costs

* Variable and Absorption Costing

* Manufacturing Overhead Drivers

Assignment 5: Prepare a master budget for a manufacturing company with two divisions and analyze variances.

Core Concept Reviews:

* Master Budget

* Variance Analysis

Assignment 6: Evaluate a capital budgeting decision made by managers.

Core Concept Reviews:

* Time Value of Money

* Capital Budgeting Techniques