Case MA-4300: Job cost analysis for Ivy Corporation – Excel

Background

Ivy Corporation manufactures a variety of indoor and outdoor furniture. It has several manufacturing facilities located in six different states or provinces: Ontario and British Columbia in Canada, and Kansas, North Carolina, Ohio, and Texas in the United States. Each manufacturing facility makes its own unique products. The company uses just-in-time inventory management, so it has no significant inventory. Ivy has five sales representatives who can sell products from any of its manufacturing facilities.

All transactions in Ivy’s job cost system for the most recent month have been exported to an Excel file that can be downloaded at http://tiny.cc/ivydata. In this transaction file, revenue amounts are shown as positive numbers while all costs shown as negative numbers. The transactions file contains the following fields:

  • Job #
  • Customer #
  • Customer name
  • Sales rep
  • Facility
  • Country
  • General ledger account
  • Amount

Job costs in Ivy’s system are tracked using four different general ledger numbers: G/L #3100 – Revenue; G/L #4101 – Direct material; G/L #4301 – Direct labor; and G/L #4501 – Manufacturing overhead.

Screenshot of Excel

For this case, you will need to know how to calculate the cost of a job using job order costing (link) and how to calculate the gross profit on a job (link).

Requirements

General instructions: Create pivot tables (link) in separate worksheets to calculate answers for each of the following requirements. Rename each of the pivot table worksheets (link) from the default names to “Pivot table 1,” “Pivot table 2,” etc. Format dollar amounts in all pivot tables with the Accounting format, zero decimal places (Windows | Mac).

  1. Pivot table #1
    1. What is the total revenue?
    1. What is the total direct material used?
    1. What is the total direct labor used?
    1. What is the total manufacturing overhead applied?
    1. What is the total gross profit?
  • Pivot table #2
    • What is the total revenue, total direct material, total direct labor, total manufacturing overhead, and total gross profit
      • for each country?
      • for each state or province?
    • Which manufacturing facility has the most gross profit? Which has the least?
    • Which country’s manufacturing facilities generate the most gross profit?
  • Pivot table #3
    • What is the revenue generated by each job?
    • What are the totals of direct material, direct labor, and manufacturing overhead costs for each job?
    • What is the gross profit generated by each job?
    • Which job generated the most gross profit? Which generated the least gross profit? Hint: Sort the pivot table by gross profit (link).
  • Pivot table #4
    • What is the revenue generated by each sales rep?
    • Which sales rep generates the most revenue? Which generates the least?
    • How much of each sales rep’s revenue is generated from facilities in Canada? From facilities in the United States? Hint: Use a filter in the pivot table (Windows | Mac).
    • How much of each sales rep’s revenue is generated by each of the facilities within each country? Hint: Use a filter in the pivot table (Windows | Mac).

Check figures

Here are some check figures for each of the pivot tables.

  • Pivot table 1: Cell B7 should be $ (429,680)
  • Pivot table 2: G/L #4501 – Mfg overhead should be $ (74,461) for the Ontario facility
  • Pivot table 3: Cell F936 should be $ 1,293
  • Pivot table 4: Sophia Payne’s Ontario revenues should equal $ 151,580

Tutorial video

See a quick video tutorial (link) of this project from start to finish, that uses a small tutorial data set (link) rather than the full data set.