...Riordan Manufacturing Accounting System Kim Mapes Darren Buchanan Stephen Settles Daniel Allen Mahendra Gossai BSA 500 – Business Systems I University of Phoenix Instgructor: Lise Hautzinger June 24, 2007 Riordan Manufacturing Accounting System Integration of software system for Riordan Manufacturing is necessary in producing accurate and up to date information, which will be available to all necessary people. This paper will discuss the integration of Riordan’s software as well as the effects integration will have on key accounting systems. Importance of Integrating Software Integration of software for Riordan Manufacturing has tremendous benefits. Benefits include accurate and error free payroll, accurate expense tracking for new products, projects, time, and operations, accurate and reduced inventories, detailed billing, collections, accounts receivable, accounts payable, and electronically generated entries into the general ledger. As orders are received they are input into the system. Each item ordered has its own distinct part number associated with it. As soon as production begins inventories used to make the product are removed from the system. The removal of raw material needed to produce the product will result in a more accurate real-time inventory. As production is completed information pertaining to payroll will be delivered through electronic entries of completed production. These entries will generate automated invoices, which in turn...
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...Assignment II – Blue Ridge Manufacturing INTRODUCTION: Blue Ridge Manufacturing produces and sells sport towels in the USA market. The firm knits all the towels it sells and tracks costs for towel production separately from the cost to customize the towels. Seventy-five percent of its orders include logo design, while the balance are print only and require the payment of a licensee fee for the logo used. Towels are made in four different sizes: Regular, hand, mid-range and hand. The normal production cycle for an order of white towels is three days. If a customer wants a colored towel, the basic white towel made by Blue Ridge is sent to a dyeing firm for 3 days more. The company sells its products to 986 different customers, which are divided into 3 types of groups: Large (8), medium (154), and small (824). They use different approaches to serve different customers: Large Customers, primarily national chains, are supported by a small in-house salespeople; Medium Customers, which are small chains, large single store, licensing, sport teams, are supported by independent representatives (on commissions); and Small Customers, primarily single stores, attracted by Advertisements in magazines and newspapers, who call or mail in their orders. Blue Ridge does not give discounts and ships all orders FOB point of origin. GENERAL ASSUMPTION: 1. We do not take into consideration the value of 85 units for other process as stated in the table 2 since there is no sufficient...
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...CHAPTER 14 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1 A Problems B Problems Study Objectives *1. Explain the distinguishing features of managerial accounting. Identify the three broad functions of management. Define the three classes of manufacturing costs. Distinguish between product and period costs. Explain the difference between a merchandising and a manufacturing income statement. Indicate how cost of goods manufactured is determined. Explain the difference between a merchandising and a manufacturing balance sheet. Identify trends in managerial accounting. Prepare a worksheet and closing entries for a manufacturing company. Questions 1, 2, 3 Do It! 1 Exercises 1 *2. 4, 5, 6, 7, 8 11, 12 2, 3 1 *3. 4, 5, 7 2 2, 3, 4, 5, 6 3, 4, 5, 7, 13 8, 12, 13, 14, 15, 17 1A, 2A 1B, 2B *4. 13 6 2 1A, 2A 1B, 2B *5. 9, 14 3A, 4A, 5A 3B, 4B, 5B *6. 15, 16, 17, 18 8, 10, 11 3 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 14, 15, 16, 17 3A, 4A, 5A 3B, 4B, 5B *7. 10, 19, 20, 21 9 3A, 4A 3B, 4B *8. 22, 23, 24 25, 26 27, 28, 29 12 4 18 *9. 19 6A *Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter. Copyright © 2011 John Wiley & Sons, Inc. Kimmel, Accounting, 4/e, Solutions Manual (For Instructor Use Only) 14-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A Difficulty Level Simple Time Allotted (min.) 20–30 Description Classify manufacturing costs into different...
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...CHARTER CONTROLS | Final Report | ENTRP 492Cole CheslockTyson Jones Kalsun Romero-GoertzDecember 4, 2011 | Table of Contents DISCLAIMER 3 ACKNOWLEDGEMENTS 4 EXECUTIVE SUMMARY 5 INTRODUCTION 7 COMPANY OVERVIEW 7 INDUSTRY OVERVIEW 8 External Environment 8 Key External Drivers 9 METHODOLOGY 10 SCOPE 11 FINDINGS AND RECOMMENDATIONS 12 GOVERNMENT CONTRACTS 12 OEM CONTRACTS 14 ACCOUNTING METHODS 16 ORGANIZATIONAL STRUCTURE & PLANNING 19 ONLINE PRESENCE & BRAND AWARENESS 23 Social Networking 24 MARKETING PLAN 27 Competitive Analysis 27 4 P’s Analysis 28 Industry Segments 28 CITATIONS 32 APPENDIX 33 To-Do List 33 Manufacturing Metrics 34 PRO FORMA INCOME STATEMENTS 35 ------------------------------------------------- DISCLAIMER This material is based upon work supported by Washington State University. Any opinions, findings, conclusions, or recommendations are those of the authors and do not reflect the views of Washington State University, its employees or its administration. ------------------------------------------------- ACKNOWLEDGEMENTS Our team would like to acknowledge and extend our heartfelt gratitude to the following persons who have made this report’s completion a possibility. We would first like to thank our team mentor and advisor Albert Christensen and Kristin McMahon, who provided our team with much needed support and assistance in reviewing our papers. We would also like to thank our professor Mr. Pickett...
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...February? $38,500 + $97,000 – $15,250 = $120,250 b. What was the prime cost for February? $120,250 + $52,500 = $172,750 c. What was the conversion cost for February? $52,500 + $121,000 = $173,500 d. What was the total repair cost for February? $120,250 + $52,500 + 121,000 = $293,750 E16.1 Listed below are eight technical accounting terms introduced or emphasized in this chapter: Work in Process Inventory Cost of finished goods manufactured Conversion costs Cost of Goods Sold Period costs Management accounting Product costs Manufacturing overhead Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms. a. The preparation and use of accounting information designed to assist managers in planning and controlling the operations of a business. Management accounting b. All manufacturing costs other than direct materials used and direct labor. Manufacturing overhead c. Direct materials and direct labor used in manufacturing a product....
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...KNOWING HOW TO APPLY THEM WILL NOT WORK. HAVE A WORKING KNOWLEDGE OF THE VOCABULARY AT THE END OF THE CHAPTER. REVIEW ALL EXERCISES AND PROBLEMS ASSIGNED. CHAPTER 14 Who are the users of managerial information? What are the distinguishing features of managerial accounting? Explain the management functions. Know how to calculate Cost of Good Sold and Cost of Goods Manufactured. What is product cost, manufacturing costs and period costs? What are the three inventory accounts and how are they presented on the balance sheet? What is gross profit? What is the value chain? What is ERP? What is just-in-time inventory? What is TQM? What is the balanced scorecard? CHAPTER 15 Explain the characteristics and purposes of cost accounting What is Job order costing? What is Process costing? What are the four steps in the Job order flow of costs? Know how to prepare journal entries to record the purchase of raw materials, factory labor costs incurred, manufacturing overhead incurred, the assignment of direct materials, direct labor and manufacturing overhead to jobs during the month, assignment to finished goods and cost of goods sold. How does the job cost sheet help in accumulating manufacturing costs? Understand and know how to calculate the predetermined overhead rate or traditional costing Know how to calculate over and under applied overhead and how is it recorded in the financial statements....
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...Table of Contents INTRODUCTION AND MAIN ISSUES 3 ANALYSIS 4 Qualitative 4 Quanitative 5 Breakeven Point (BEP) 5 Flexible Budget 6 Variances 7 RECOMMENDATION 8 Encourage, motivate, reward and recognize 8 Cellular Manufacturing System 8 Implement new accounting method 9 Extend the contract 9 ACTION PLAN 10 REFERENCES 12 INTRODUCTION AND MAIN ISSUES Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labour costs by locating in southern China. Because of high demand for iPhone 4, Apple had contracted with Danshui to assemble iPhone in Plant No. 2. The contract need Danshui to assemble 2.4 million iPhone in the period between June 1, 2010 and May 31, 2011. Wentao Chen, manager of Danshui Plant No. 2 was worried because in the third month of the contract production was only 180,000 units per month. Suppose to produce 2.4 million iPhone its need 200,000 units per month. After preliminary budget has come out, the company loss of $672,000. The main issue of this case is the break contract between Danshui and Apple. The contract called Danshui to assemble 2.4 million in the period of one year, but Danshui only can produce 180,000 units per months. If Danshui still can produce that amount, it can’t reach 2.4 million in one year. This might happen because Danshui cannot find people to hire, even though they have raised wages by almost 30%. Another reason is they have problem with the...
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...partners-only Tailspin Web site: • Your channel partners could enable their in-house inventory systems to automatically reorder when stock got low, could get questions answered through a FAQ menu, could be notified of special promotions, and could receive shipping confirmation. • Prior to accepting an order, your Web site could alert your customer to outstanding credit issues that needed to be resolved and could offer the opportunity to speak to someone in your accounting department. • You could automatically update your accounting and manufacturing systems in real time, with e-mail alerts automatically generated to the relevant individuals. You indicated that if you had these capabilities you could meet or exceed your revenue targets within 9-12 months, and could reduce operating expenses by increasing efficiencies in order processing and manufacturing capacity utilization. Our Next Steps When I told you that I was confident our company could help you integrate our e-commerce solution with your existing internal accounting and...
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...Rich Manufacturing So many firms use cost-plus pricing for supply contracts because it is the easiest method in order to calculate cost and eliminate error. Most of the time when firms are working with numbers, they must find ways that are efficient and not time consuming. What managers do is simply target a rate of return thus saving time and increase efficiency. In fact, it can be more useful in some occasions than others. As stated by Brickley, Smith, and Zimmerman (2009), “cost-plus pricing is more useful when the rate of return that yields the profit-maximizing price on the product is relatively stable over the relevant range of cost variation for a given product and varies little across a related set of products. (p. 212). One of the potential problems I envision with cost-plus pricing is the attention to consumer demand. For cost-plus pricing, this aspect is very much ignored. According to Brickley, Smith and Zimmerman (2009), cost-plus pricing ignores the rise in costs and neglects how the price sensitivity of consumers. Disregarding demand can be detrimental to a company and is a crucial factor. “If demand is slow, then the mark-up percentage may be lower in order to lure in customers. On the other hand, if demand for the product is high and economic conditions are good, then the mark-up percentage may be higher as the company feels they can get the higher price for their product” (Peavler, 2013). Both of these factors demand and pricing, are critical to increasing...
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...ACCOUNTING FOR INVENTORIES For Merchandising Firms Inventories are valued at cost, net of discounts, and including transportation and other costs (ie: import duties) to prepare the goods for sale. Buying Inventory: * DR Merchandise Inventory, CR Cash/Accounts Payable Selling Inventory: * DR A/R or Cash, CR Revenues * DR Cost of Goods Sold Expense, CR Merchandise Inventory Lower of Cost or Market (LOCOM): * Inventories can sometimes decrease in value while stored due to market conditions, obsolescence or damage * Accounting standards require firms to subject their inventories to an impairment test at fiscal year-end and, where the FMV < Purchase Price, write down the value of their inventory * FMV in IRFS = “net realizable value”; in US GAAP = “replacement cost” * For example, if you purchased 200 ropes at $40 but they are only worth $30 at year end: * DR Impairment expense $2000, CR Accumulated Inventory Impairment $2,000 * The reason we don’t subtract impairment directly from merchandise inventory is because the loss is still unrealized and there is a possibility of recovery in the future. * For example, say market conditions improved and now ropes were valued at $50 * DR Accumulated Inventory Impairment $2,000, CR Impairment Expense $2,000 * Here it does not matter how much greater the value is, we do not account for increases in value Methods of Inventory Valuation ...
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...Desouky, Steven Boettcher, Gregory Ganfi BSA 310 Business Systems Due January 25, 2010 University of Phoenix Riordan Manufacturing Systems Service Request SR-M-012 History and Background of Riordan Manufacturing Riordan Manufacturing Inc. began with Dr. Riordan who was a chemistry professor. Dr. Riordan received approval for a few patents that had something to do with processing polymers in to super strong plastic substrates. In 1991 Dr. Riordan started Riordan Plastics, Inc. after he discovered the commercial power and economic benefits of his patents (University of Phoenix, 2004). Riordan took on a direction of paying more attention to research and development. He also made sure he maintained the licenses of those patents he had already obtained. By 1992 Dr. Riordan, through venture capital investments, purchased a fan manufacturing company. The fan company was in Pontiac, MI. in which he also changed the name of the company a second time to Riordan Manufacturing, Inc (University of Phoenix, 2004). By the year 1993 Riordan Manufacturing expanded its operations to another manufacturing plant in Albany, GA. This plant was responsible for producing plastic beverage bottles. The most recent expansion project by Riordan Manufacturing, Inc. was back in the year 2000 when Riordan Manufacturing, Inc. went global. They moved manufacturing operations for the entire fan company to China. Meanwhile, the plant in Pontiac, MI. resumed operations by retooling to manufacture...
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...Wilkerson has always been a competitive force in the pump manufacturing industry, but lately their profits have dropped to an unacceptable level. The drop in profits has forced management to take a look at several possible solutions, including their accounting methods. Historically, Wilkerson has relied on the traditional costing method of accounting meaning that they have allocated overhead as a percentage of the labor hour costs to each of the three products. The overhead costs are currently set at 300% of the production-run direct labor costs which is allocating three times the labor rate figures to overhead, per product line. In doing so, the overhead costs that should be applied to the flow controllers are really being allocated to the other two product lines. I would suggest using the Activity Based Costing (ABC) method of accounting to create a more realistic connection between the volume of production for each product with the cost of overhead and labor associated with each unit. Wilkerson stated five activities that fall under overhead: engineering costs, receiving and production costs, setup labor costs, packing and shipping costs and machine usage costs. By using the ABC model, Wilkerson is able to split the total manufacturing overhead based on utilization of each of these resources per item manufactured providing a realistic cost per unit figure. Based on the numbers that were derived by using the ABC model, I would recommend the following actions be taken...
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...Running Head: Riordan Manufacturing Learning Team C: Richard Gioia, Tifany Read, Timothy Bergeron BSA/310 6/22/2014 Riordan Manufacturing Incorporated owned and operated by Riordan Industries, which is a Fortune 1000 enterprise with current revenues in excess of $1 billion US dollars. Riordan Manufacturing currently employs 550 people and has projected annual earnings of $46 million US dollars. Riordan Manufacturing is broken up into multiple plants. Plastic beverage containers are currently in production in Albany, Georgia, custom plastic parts production is in Pontiac, Michigan, and plastic fan parts production is in Hangzhou, China. The research and development facility currently resides at the corporate headquarters in San Jose, California. The majority of their customers are automotive parts manufacturers, aircraft manufactures, the Department of Defense, beverage makers and bottlers, and appliance manufactures. The mission of Riordan Manufacturing focuses in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth. Using Six Sigma, leading edge R&D and exceeding ISO 9000 standards, are the attitudes and abilities by which Riordan Manufacturing are defined. Riordan Manufacturing will continue to lead the industry in using polymer materials to provide solutions to meet their customer’s challenges. The responsibility of the Stakeholders for the Riordan Manufacturing Service Request is...
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...MANAGEMENT ACCOUNTING MULTIPLE CHOICE PRACTICE QUESTIONS FOR TOPIC 1 72. Both direct materials and indirect materials are a. period costs. b. merchandise inventory. c. raw materials. d. manufacturing overhead. 73. Into which one of the following accounts would the work of factory employees that can be physically and directly associated with converting raw materials into finished goods be categorized? a. Direct labor b. Indirect labor c. Manufacturing overhead d. Indirect materials 74. Which one of the following would not be classified as manufacturing overhead? a. Indirect materials b. Insurance on factory building c. Indirect labor d. Direct materials 75. Which one of the following is a product cost? a. Indirect labor b. Office salaries c. Sales person’s salaries d. Advertising costs 76. A company uses sandpaper in its production process. How is the cost of the sandpaper classified? a. Miscellaneous expense b. A direct material c. A period cost d. An indirect material 77. In which classification would the wages of a factory payroll clerk be classified? a. Raw materials b. Indirect labor c. Period cost d. Direct labor 78. Which one of the following is not a manufacturing cost? a. Advertising costs b. Cost of goods sold c. Manufacturing overhead d. Direct materials 79. What effect do current...
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...in and out for Job Work requires a proper tracking system and the ability to provide instant reports. If this process is done manually, it might be complicated, error-prone and time-consuming. Tally software provides a powerful ‘Job Work In’ feature that simplifies handling of the Job Work process so that users can easily track all Job work transactions and generate reports instantly with all the applicable statutory requirements. Overall, it enables users to get better management and control over Job Work. Steps in Tally ERP. 9 Job work in order Recording raw materials received in material in voucher Recording manufacturing journal for finished goods Recording delivery of finished goods using material out voucher Sales invoice for the job Receipt of payment from the principal manufacturer Here we can get the overall view and summary of how tally processes the raw and haphazard informations in a systematic...
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