Managerial Accounting Paper
Abstract: This project consists of a compilation of Managerial Accounting principles and concepts that have been learned throughout the ACCT 202 course. The theory learned was put into practice by using direct Accounting Information from the Nike Corporation, as a guideline for our own company, Scooter’s Sneakers. By fulfilling the guidelines for the project, the group was better able to visualize and understand the techniques and reasoning for the information learned from each Chapter taught in class.
Introduction: Scooter’s Sneakers is a footwear corporation that has recently been created as an extension of Nike Incorporated’s family of manufacturing products. This company focuses on creating comfortable all-purpose sneakers, all with the signature color, design, materials, contouring, and durability. These sneakers are designed to be a classic, so that whenever anyone sees this particular shoe, they associate it with quality, comfort, durability, and effortless chic. Since it is a relatively new company, Scooter’s hopes to sell 20,000 of these sneakers within the calendar year. Each sneaker will be priced at $80.00, which would bring in a total of $1,600,000.00 at its year end. This project will show the information used and formatting to find the Cost of Goods Manufactured (C.O.G.M.), Manufacturing Overhead, Cost of Goods Sold (C.O.G.S.), Income Statement, quality management approaches, and various costs and expenses incurred for Scooter’s Sneakers. Cost of Goods Manufactured: Scooter keeps its reputation by using only the finest quality materials. Every month, they purchase leather, canvas, cotton, and synthetic leather fabrics, solid rubber, gum rubber, foam pellets, and shoe laces from China and India in order to directly produce these sneakers, solely because the materials are relatively cheaper. Freight in is totaled at 5% of total purchases, which equals to $200. At the end of the year, Scooter’s managers want $5,000 worth of
Introduction: Scooter’s Sneakers is a footwear corporation that has recently been created as an extension of Nike Incorporated’s family of manufacturing products. This company focuses on creating comfortable all-purpose sneakers, all with the signature color, design, materials, contouring, and durability. These sneakers are designed to be a classic, so that whenever anyone sees this particular shoe, they associate it with quality, comfort, durability, and effortless chic. Since it is a relatively new company, Scooter’s hopes to sell 20,000 of these sneakers within the calendar year. Each sneaker will be priced at $80.00, which would bring in a total of $1,600,000.00 at its year end. This project will show the information used and formatting to find the Cost of Goods Manufactured (C.O.G.M.), Manufacturing Overhead, Cost of Goods Sold (C.O.G.S.), Income Statement, quality management approaches, and various costs and expenses incurred for Scooter’s Sneakers. Cost of Goods Manufactured: Scooter keeps its reputation by using only the finest quality materials. Every month, they purchase leather, canvas, cotton, and synthetic leather fabrics, solid rubber, gum rubber, foam pellets, and shoe laces from China and India in order to directly produce these sneakers, solely because the materials are relatively cheaper. Freight in is totaled at 5% of total purchases, which equals to $200. At the end of the year, Scooter’s managers want $5,000 worth of