Cost accounting is used for two main purposes. The first purpose is to determine the actual costs of products, projects, processes, or services so an organization can report
correct and accurate information on their financial statements. The second purpose is to aid the management team in making decisions and guiding the planning and
control functions of the organization. Cost accounting provides an analysis of cost behavior, cost-volume-profit relationships, budgeting, resource costing, and activitybased costing. The roots of cost accounting are in the manufacturing business, but cost-accounting concepts are also used in service industries.
This assessment focuses on the SRS Educational Supply Company case study. SRS is a company that provides materials and supplies to educational institutions. The SRS
business model is to be a one-stop provider of educational supply needs. For example, some of their product lines include workbooks, classroom visual aids, instructor
support materials, art supplies, lab supplies, and administrative office supplies. While SRS serves all levels of educational institutions, the majority of their customers are K12 schools. Sales can vary quite a bit from month to month, as K-12 educational institutions have seasonal ordering patterns. Thus, budgeting is vital for planning and cash
flow purposes. SRS has a June 30th fiscal year end.
In this assignment, you will consider job order costing and process costing for the SRS Educational Press division of the company.
You will review the information provided and prepare journal entries for the inventories. Then, you will prepare a summary of the performance for the Educational Press
division.
Prompt
Specifically, you must address the following critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).
I. Cost Structures
A. Prepare an overview diagram of the job-costing system at the SRS Educational Press. [ACC-311-01]
B. In a spreadsheet, prepare journal entries to summarize the 2017 transactions. For your final entry, dispose of the year-end under- or overallocated
manufacturing overhead as a write-off to the Cost of Goods Sold account. Number your entries. Explanations for each entry may be omitted. [ACC-311-01]
C. In a spreadsheet, show posted T-accounts for all inventories and the cost of goods sold, the manufacturing overhead control, and the manufacturing
overhead allocated. [ACC-311-01]
D. How was the SRS Educational Press performance in 2017? Should the company continue to have in-house press production? Did SRS accurately budget for
manufacturing overhead costs? Support your answers with relevant data. Also, briefly explain how the firm can dispose of under- or overallocated overhead
costs. [ACC-311-03]
E. Name at least two other products that you are familiar with that would benefit from job order costing, and briefly explain how they would benefit. [ACC311-01]
Guidelines for Submission: Complete the overview diagram for Item A of Section I using a program of your choice. Then, copy and paste it into the appropriate tab of the
Final Project Part I Student Workbook in Excel. Compete items B and C in the workbook. Submit a 1- to 2-page response to items D and E as a Word document.