Accounting Question

Assignment

This assignment requires you to apply the concepts learned in this module in a real-world setting. Please review the below PDF file for the assignment details:

Module 6 Repackage and SellLinks to an external site.

Module 6 – Application & Analysis Assignment

Assume you are starting a small retail business. A retail business is one where you purchase the product

(rather than making the product yourself) and resale it. Think about products that you can purchase in

bulk (e.g., from Costco, Sam’s, etc.) and repackage them into smaller quantities to offer for sale at a

local fair, sporting event, or similar venue.

Now, think about what information you need to create a budget for a three-month period. Investigate

the price and quantity you can purchase this product at a retail warehouse. Choose a selling price for

the repackaged product. Make reasonable assumptions about how many of the repackaged products

you can sell each month and your related expenses.

Respond to the following questions based on your knowledge from this week’s course material and

your investigation.

1. Describe your product. What is the cost of this product? What size (quantity) will you purchase?

What size (quantity) will your repackaged product be? At what price will you sell your

repackaged product? Make projections of your sales in units for each of the next 3

months.

2. Estimate how many hours you will spend in each of the next 3 months doing the purchasing and

repackaging. Select a reasonable wage rate for yourself.

3. What other expenses are you likely to have related to the repackaging of your product (e.g.,

bags, containers, etc.)? Make projections of your costs for each of the next 3 months.

4. What other expenses are you likely to have related to the selling of your product (e.g., booth

rental, vendor license, etc.)? Estimate how many hours you will spend selling the products and

use the wage rate you decided above. Make projections of your costs for each of the next 3

months.

5. Prepare a budgeted income statement for a 3-month period (i.e., one quarter). Exhibit 9-12 in

the textbook is an example of a budgeted income statement. However, your budgeted income

statement should have 4 columns with amounts – one for each month and a total for the quarter.

a. Sales revenue should be based on 1. above

b. Costs of goods sold should be based on 1., 2., and 3. above

c. Operating expenses should be based on 4. above

Submission

Please submit a Word file with your responses. You should use complete sentences, proper grammar, and appropriate expression of ideas for professional correspondence.

View Rubric

Application & Analysis Rubric – 65 pts / 4 questions plus budget

Question 1

Question 212 ptsExemplaryIdentifies all key information; includes no incorrect information; provides extensive support10 ptsGoodIdentifies most key information; includes some incorrect information; provides support6 ptsRudimentaryFails to identify most key information; includes extensive incorrect information; provides limited support0 ptsUnacceptableFails to provide a response with support; response is incorrect/ 12 ptsQuestion 312 ptsExemplaryIdentifies all key information; includes no incorrect information; provides extensive support10 ptsGoodIdentifies most key information; includes some incorrect information; provides support6 ptsRudimentaryFails to identify most key information; includes extensive incorrect information; provides limited support0 ptsUnacceptableFails to provide a response with support; response is incorrect/ 12 ptsQuestion 412 ptsExemplaryIdentifies all key information; includes no incorrect information; provides extensive support10 ptsGoodIdentifies most key information; includes some incorrect information; provides support6 ptsRudimentaryFails to identify most key information; includes extensive incorrect information; provides limited support0 ptsUnacceptableFails to provide a response with support; response is incorrect/ 12 ptsBudget

Application & Analysis Rubric – 65 pts / 4 questions plus budget
Criteria	Ratings	Pts
			12 ptsExemplaryIdentifies all key information; includes no incorrect information; provides extensive support10 ptsGoodIdentifies most key information; includes some incorrect information; provides support6 ptsRudimentaryFails to identify most key information; includes extensive incorrect information; provides limited support0 ptsUnacceptableFails to provide a response with support; response is incorrect				/ 12 pts
17 ptsExemplaryIdentifies all key information; all assumptions are reasonable; includes no incorrect information and calculations14 ptsGoodIdentifies most key information; most assumptions are reasonable; most information and calculations are correct9 ptsRudimentaryFails to identify most key information; includes extensive unreasonable assumptions; includes extensive incorrect information and/or calculations0 ptsUnacceptableFails to provide a complete response; response is unreasonable and/or incorrect	/ 17 pts
Total Points: 0

Module 6 – Application & Analysis Assignment
Assume you are starting a small retail business. A retail business is one where you purchase the product
(rather than making the product yourself) and resale it. Think about products that you can purchase in
bulk (e.g., from Costco, Sam’s, etc.) and repackage them into smaller quantities to offer for sale at a
local fair, sporting event, or similar venue.
Now, think about what information you need to create a budget for a three-month period. Investigate
the price and quantity you can purchase this product at a retail warehouse. Choose a selling price for
the repackaged product. Make reasonable assumptions about how many of the repackaged products
you can sell each month and your related expenses.
Respond to the following questions based on your knowledge from this week’s course material and
your investigation.
1. Describe your product. What is the cost of this product? What size (quantity) will you purchase?
What size (quantity) will your repackaged product be? At what price will you sell your
repackaged product? Make projections of your sales in units for each of the next 3 months.
2. Estimate how many hours you will spend in each of the next 3 months doing the purchasing and
repackaging. Select a reasonable wage rate for yourself.
3. What other expenses are you likely to have related to the repackaging of your product (e.g.,
bags, containers, etc.)? Make projections of your costs for each of the next 3 months.
4. What other expenses are you likely to have related to the selling of your product (e.g., booth
rental, vendor license, etc.)? Estimate how many hours you will spend selling the products and
use the wage rate you decided above. Make projections of your costs for each of the next 3
months.
5. Prepare a budgeted income statement for a 3-month period (i.e., one quarter). Exhibit 9-12 in
the textbook is an example of a budgeted income statement. However, your budgeted income
statement should have 4 columns with amounts – one for each month and a total for the
quarter.
a. Sales revenue should be based on 1. above
b. Costs of goods sold should be based on 1., 2., and 3. above
c. Operating expenses should be based on 4. above