Unit v case study | BBA 2201 – Principles of Accounting I | Columbia Southern University

Cookie Creations (Chapters 5 and 6)

This provision is a duration of the Cookie Creations fact examine from anterior chapters. From the knowledge gathered in the anterior chapters, unravel the duration of the Cookie Creations fact examine beneath for Chapter 5 and Chapter 6, which can also be build on p. 5-51 and p. 6-45. 

The fact examine admits you to engage what you enjoy versed encircling statementing for merchandising operations (Chapter 5) and inventories (Chapter 6). This provision allure admit you to exercise what you enjoy versed so far. 

Part I

Because Natalie has had such a fortunate leading few months, she is because other opportunities to amplify her matter. One opening is the sale of European mixers. The proprietor of Kzinski Supply Company has approached Natalie to behove the scientific distributor of these keen mixers in her particularize. The ordinary consume of a mixer is almost $575, and Natalie would vend each one for $1,150. Natalie succeeds to you for direction on how to statement for these mixers. Each contrivance has a serial estimate and can be largely attested.

Natalie has succeed to you for your direction on how to statement for these mixers and asks you the questions beneath, which you must address. 

  1. Would you weigh these mixers to be catalogue, or should these mixers be classified as edibles or equipment? 
  2. Which catalogue tracking plan should Natalie use: perennial or interrupted? 
  3. Which plan do you reckon is better: perennial or interrupted? 
  4. Which plan would you approve for the emblem of catalogue that Natalie wants to vend? 
  5. How repeatedly does Natalie scarcity to estimate catalogue if she maintains it using the perennial plan? In opposition, does she scarcity to estimate catalogue at all? 

Provide your rejoinders to the questions in a Word instrument. Use the part precept, required part media, and suggested part media to formulate your rejoinder. Your rejoinder should be a stint of two pages in tediousness and belowstand at meanest two references. Adhere to APA Style when creating citations and references for this provision. 

Part II

Natalie is diligent establishing twain divisions of her matter (cookie classes and mixer sales), and she is completing her matter limit. Her goals for the proximate 11 months are to vend one mixer per month and to afford two to three classes per week.

The consume of the keen European mixers is expected to growth. Natalie has exact negotiated new conditions after a while the proprietor of Kzinski Supply Company, which allure belowstand shipping consumes in the negotiated alienation absorb (mixers allure be shipped untrammelled on consideration (FOB) consignment). Assume that Natalie has ruled to use a interrupted catalogue plan and now must adopt a consume glide certainty for her mixer catalogue. The transactions listed beneath happen in February to May 2020.

Feb. 2: Natalie buys two deluxe mixers on statement from Mixer Supply Company for $1,200 ($600 each), FOB consignment, conditions n/30.

Feb. 16: She vends one deluxe mixer for $1,150 money.

Feb. 25: She pays the whole tit to Mixer Supply Company. 

Mar. 2: She buys one deluxe mixer on statement from Mixer Supply Company for $618, FOB consignment, conditions n/30. 

Mar. 30 : Natalie vends two deluxe mixers for a sum of $2,300 money. 

Mar. 31: She pays the whole tit to Kzinski Supply Company. 

Apr. 1 : She buys two deluxe mixers on statement from Mixer Supply Company for $1,224 ($612 each), FOB consignment, conditions n/30. 

Apr. 13: She vends three deluxe mixers for a sum of $3,450 money. 

Apr. 30: Natalie pays the whole tit to Mixer Supply Company. 

May 4: She buys three deluxe mixers on statement from Mixer Supply Company for $1,875 ($625 each), FOB consignment, conditions n/30.

May 27: She vends one deluxe mixer for $1,150 money. 

For Part II, state the consume of commodities accelerationful for sale. You allure resumption from Chapter 5 (see Part I over) that at the end of January, Cookie Creations had three mixers on operative at a consume of $575 each. For Part II of the provision, you allure proportion the subjoined items: ·

  • ending catalogue,  
  • consume of commodities sold, 
  • gross avail, and  
  • gross avail reprimand below each of the subjoined methods: last-in, leading-out (LIFO); leading-in, leading-out (FIFO); and mean consume. 

Submit Part I and Part II in a only Word instrument. Your sum totally dependence should belowstand two pages for Part I and the solutions to Part II. 


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