Analyze the results of the quantitative analysis.
All information required for this assignment is attached below.
The information on the Data tab was collected for Paisley Industries.
Quantitative Analysis:
Complete the following schedules/statements on the Student Template tab:
- Prepare a schedule of raw materials placed in production for the year ended December 31, 2018.
- Prepare a schedule of cost of goods manufactured for the year ended December 31, 2018
- Prepare a schedule of cost of goods sold for the year ended December 31, 2018.
- Prepare an income statement for the year ending December 31, 2018.
Qualitative Analysis:
Analyze the results of the quantitative analysis. Provide recommendations to management of Paisley Industries based on the results of their 2018 operations.
Copying solutions from the Internet is plagiarism; doing so can result in a grade of zero and may result in your flunking this course. Please do not copy solutions from others or from materials found on the Internet. Your instructors have access to tools that make it very likely they will find any instances of plagiarism.
Deliverables
- Quantitative Analysis (Excel required): You are required to use the provided Excel workbook to complete the quantitative analysis for this assignment.
- Qualitative Analysis (Word required): Prepare a 2-page summary addressing the required qualitative analysis, as noted in the Student Workbook. Your paper is required to be formatted according to APA requirements. Be sure to incorporate key concepts from this week’s readings and properly cite your references according to APA requirements. Do NOT embed the results of your quantitative analysis in your Word document. You should only reference parts of your quantitative analysis in your written analysis. Your written responses to the qualitative prompts should not be presented in a question and answer format.
Requirements
| Paisley Industries |
| Quantitative Analysis: |
| The information on the Data tab was collected for Paisley Industries. |
| Complete the following schedules/statements on the Student Template tab: |
| a. Prepare a schedule of raw materials placed in production for the year ended December 31, 2018. |
| b. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2018. |
| c. Prepare a schedule of cost of goods sold for the year ended December 31, 2018. |
| d. Prepare an income statement for the year ending December 31, 2018. |
| Qualitative Analysis: |
| Analyze the results of the quantitative analysis. Provide recommendations to management of Paisley Industries based on the results of their 2018 operations. |
Data
| Paisley Industries | |
| The following information is for Paisley Industries for the year ended December 31, 2018. | |
| Raw materials inventory beginning balance | $25,000 |
| Raw materials inventory ending balance | $19,000 |
| Work-in-process inventory beginning balance | $1,645,000 |
| Work-in-process inventory ending balance | $1,795,000 |
| Finished goods inventory beginning balance | $1,225,000 |
| Finished goods inventory ending balance | $1,045,000 |
| Raw material purchases | $295,000 |
| Direct labor used in production | $370,000 |
| Manufacturing overhead | $1,885,000 |
| Selling costs | $265,000 |
| General and administrative | $715,000 |
| Sales revenue | $3,790,000 |
| Indirect Materials included in Raw Materials placed in production | $31,000 |
Student Template
| Paisley Industries |
| Income Statement and Supporting Schedules. |
| Note: You are required to use referencing formulas to pull the numbers in from the data tab (yellow cells) and to calculate all required numbers (grey cells). |
| <Company Name> |
| Schedule of Raw Materials Placed in Production |
| Year Ended <Date> |
| Raw materials inventory, beginning balance |
| Add current period raw materials purchases |
| Raw materials available for production |
| Less raw materials inventory, ending balance |
| Raw materials placed in production |
| Less indeirect materials included in manufacturing overhead |
| Direct materials placed in production |
| <Company Name> |
| Schedule of Cost of Goods Manufactured |
| Year Ended <Date> |
| WIP Inventory, beginning balance |
| Add current period manufacturing cots: |
| Direct Materials |
| Direct Labor |
| Manufacturing Overhead |
| Total current period manufacturing costs |
| Total cost of work in process |
| Less WIP Inventory, ending balance |
| Cost of goods manufactured |
| <Company Name> |
| Schedule of Cost of Goods Sold |
| Year Ended <Date> |
| Finished goods inventory, beginning balance |
| Add cost of goods manufactured |
| Cost of goods available for sale |
| Less finished goods inventory, ending balance |
| Cost of goods sold |
| <Company Name> |
| Income Statement |
| Year Ended <Date> |
| Sales |
| Cost of goods sold |
| Gross profit |
| Less operating (nonmanufacturing) expenses: |
| Selling |
| General and administrative |
| Operating profit |