Accounting Question

I have upload two fies. One is called “Signature Assignment Grading Rubric”, this is the assignment rubric that i need to complete. The second file “Charlie’s Chocolate” is the sample paper, which is a reference to give us a direction to write the paper. All we need is to focus the grading rubric. Please don’t use AI to write it!! Just follow the grading rubric and instruction to write the paper. Take your time and deliver good quality. Thank you so much!

Signature Assignment Instructions
In this course you will complete a signature assignment, which is designed to demonstrate your
proficiencies in specific programmatic learning outcomes.
The signature assignment for this course requires you to write a paper, 5 pages in length, based on of the
following topic:
Writing Assignment
The primary purpose of this assignment is to help students gain a better understanding of cost
accounting concepts. This is not a group assignment. The requirement for this paper is minimum 5pages/double space on a chosen company. You are required to write a cost accounting policy for the
accounting department/ using and considering the concepts that you learn throughout the course. I
will provide some samples for your review; you are also encouraged to research on internet to find
more information on Cost Accounting Policies and how they are formulated.
More details will be provided during the course.
Requirements:
Written in APA style: referencing and use of section headers;
Grammatically correct;
Written with technical prose and have substance;
The paper should be at least 5 full pages plus a reference list, but not more than 10 full
pages, with single- spacing, normal margins and a 12-font typeset.
a. The length of the paper is exclusive of any graphs, illustrations and or other
exhibits that are referred to in the paper.
5. Facts and uses of sources that are incorporated into your paper must be footnoted and a
bibliography must accompany the paper;
6. Paper content – It is not necessary to have a long introduction or conclusion for this
project.
a. For example, include a few, simple paragraphs on the company history and issue.
7. Subject matter is arranged neatly, concisely stated, and covers the entire topic addressed
above.
1.
2.
3.
4.
Signature Assignment Rubric
This project is due before the start of Session 16. I strongly suggest that you avoid waiting
until the final week to start the project.
Project submitted from another course will receive no credit.
Project Grading
The highest score is 100 points and will be earned if all the project criteria identified
previously are met.
Papers will be marked down if they do not follow the guidelines for the project or if
they fail to present adequate data to support the conclusion. Use managerial
accounting concepts and terminology from your course.
Content: 40%
•
•
•
Introduction of topic
Full explanation of topic
Incorporation of course content and application towards company cost policy
Depth of Thought: 30%
• Provide cost policy of all aspects of business for your chosen company – such as direct
material, direct labor, overhead and etc.
Ultimate Topic Clarity: 20%
•
•
•
•
Written in clear and understandable language
Logical order
Provides connection to cited material (if any)
Proper
Style: 10%
•
•
•
Incorporates section headers
Use of references within paper if necessary
Inclusion of reference page at end of paper
Poonam Shah
Accounting 66
12/4/06
Charlie’s Chocolate Factory
Cost Accounting Policy
I.
Introduction – This cost accounting policy serves as a guideline for
determining cost data for management decisions, as well as for financial
statement purposes. The individual project leaders are responsible for
compliance with this policy. Documentation must be maintained and
provided to the Finance Department for accounting purposes.
a. Note: Many definitions and descriptions in this policy are from Principles
of Cost Accounting by Edward J. VanDerbeck. Please refer to this text for
additional details.
II.
Job Order Cost System – The Company shall use a job order cost system due
to the different orders based on types of chocolate and packaging processed in
the manufacturing facility.
a. Costs shall be tracked by job to determine the selling price
b. Profit and loss shall be tracked by job to provide information to
management about inefficiencies
III.
Manufacturing Costs – Direct/ Indirect Costs:
Direct costs are costs which can be identified specifically with a particular job
and can be directly assigned to activities relatively easily with a high degree
of accuracy. Direct costs include direct materials and direct labor.
Indirect Costs are expenses which are common to all jobs and cannot be
traced to a specific activity or job. Indirect costs are applied to Factory
Overhead.
a. Direct Materials – Direct Materials are materials that become a part of and
can be readily identified with a certain manufactured product. Examples
include cocoa used in making the chocolate, and the cost of gift boxes for
packaging purposes.
i. Limited Access – Only authorized personnel shall have access to
storage areas. An approved materials requisition is required for
removal of materials from storeroom. Periodic inventory counts
shall be taken.
ii. Segregation of Duties – Personnel performing activities related to
purchasing, receiving, storage, use, and recording shall be
segregated. All purchases require an approved purchase
requisition and purchase order. Receiving report and invoice
should be matched to the purchase order. See Purchasing Policy
for additional information.
iii. Accuracy in Recording – Inventories of materials shall be
accurately recorded based on the Last-in, first-out method (LIFO).
Therefore, material cost is recorded using the latest prices.
b. Direct Labor – Labor of employees who work directly on the product
manufactured. Examples include machine operators and package assembly.
i. Factory employees shall be paid an hourly rate, along with
incentives and bonuses based on production quantity and quality
(quality of production determined by QA department).
1. Overtime is paid at a time and a half. The overtime
premium shall be charged to Factory Overhead due to the
difficulty of tracking the time by job.
ii. Payroll and employee records shall be kept on each employee and
each job, so that labor costs can be applied to each job. Employees
and Supervisors are required to track hours by job.
iii. Payroll taxes (such as Social Security, Federal and State
Unemployment) shall be applied to Factory Overhead instead of
Direct Labor due to the difficulty of allocating to each job. This is
the same situation for Bonus, Vacation and Holiday pay.
c. Factory Overhead – Costs related to the manufacturing of a product other
than Direct Materials and Direct Labor. Examples include indirect
materials, indirect labor, depreciation on machinery, and utilities. Indirect
Materials and Labor are expenses which are incurred but are common to
the factory and cannot be tied to one specific job.
i. Materials for spoiled and defective work shall be charged to
factory overhead.
ii. Fixed factory overhead costs shall be maintained in a schedule of
fixed costs. Examples include depreciation and property tax.
iii. Factory overhead costs should be estimated using the direct labor
hour method (number of hours multiplied by rate) in order to
capture total factory overhead costs in the Work in Progress
account.
IV.
Work in Progress and Cost of Goods Sold
a. Work in Progress is an inventory account for manufacturing costs for
goods in production which have not been completed yet. This account
includes materials, labor, and overhead for products which are not
transferred to finished goods yet.
b. Cost of goods sold is calculated by adding the beginning inventory to the
goods manufactured, and subtracting the ending finished goods inventory.
This account is very important to the financial statements because it
determines gross profit.
V.
Income Statement
a. The Income statement is prepared using Revenue and Cost of Goods sold
data (see section IV). Selling and administrative expenses and income tax
are other costs prior to calculating Net Income.
i. Selling and Administrative Expenses – This includes wages for
salaried employees such as Finance/ Accounting, Executives, sales
personnel, etc. Administrative expenses also include items such as
office supplies.
ii. Income tax – Taxes shall be calculated based on operating income.
See Taxation policy for additional information.
VI.
Unit Cost – the cost of manufacturing one unit of product
a. Each job must calculate the unit cost of the finished product and analyze
actual to budget variances. Unit cost data shall be used to determine the
selling price, comparing to competition, and analyzing profitability.
VII.
Budgeting – The following budgets shall be prepared and budget to actual
variances shall be monitored. All budgets shall be approved by Charlie on a
monthly basis.
a. Sales budget – projected volume of sales in units and dollars
b. Production budget – production requirement to meet sales budget
c. Direct Materials budget – quantity of materials needed to meet production
and ending inventory requirements
d. Direct Labor budget – standard labor time required to meet production
e. Factory Overhead budget – estimated factory overhead to meet production
f. Cost of Goods Sold budget – estimated COGS based on budgets above
g. Selling and Administrative expenses budget – planned expenditure levels
based on sales
h. Budgeted Income statement – summarizes all budgets to determine
expected profitability
VIII.
Unacceptable Costing practices
a. Assigning costs based on budgeted costs instead of actual costs.
b. Exceeding the budget by an amount over $1000 requires approval by
Charlie.
c. The following costs are NOT to be included in manufacturing or selling/
admin costs:
i. Entertainment
ii. Fines
iii. Personal expenses of employees
iv. Lobbying
IX.
Conclusion
a. Any questions regarding this policy can be directed to Charlie.