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The Lego Project

Lego Project Instructions

Fall 2020

Due Date: 11/16/20

The Lego Project will be due Nov 16th at 11:59PM

The purpose of this project is for you to reinforce the fundamentals of managerial accounting presented in ACCT 2102. You can do this in groups of two. On the coversheet on your written deliverable please include both names if you worked in a group. In addition, your cover sheet should contain the name of your creation and a picture of your creation. Please include both names on the PowerPoint as well.

You will be creating a Lego kit either by drawing or a Lego building website. The number of Legos per creation will differ for each group depending on the creation. You must use a minimum of 100 pieces to create your Lego creation. This project should not cost you any money you should be able to download the software off of Lego.com or draw your creation. If you find another website similar, you are free to be creative. If you have Legos, you may also build an actual structure.

Assume you are creating a Lego kit to resell. Also, assume that you are presenting this project to the Executive Vice President of Product and Marketing Development.

Grading: 20% actual creation 40% two-page written deliverable 40% presentation

Actual Creation  20 points

Written Deliverable  40 points

Presentation (PowerPoint and Presentation)  40 Points

Total Points 100 Points

Your deliverable and presentation will be judged on both creativity and the informational content of the report. DO NOT SUBMIT A DELIVERABLE THAT RESEMEBLES JUST ANSWERING THE QUESTION IN ORDER OR THAT RESEMBLES A RESEARCH PAPER.

Direct Materials Cost:

Bricking Listing- Use this listing of Lego pieces to determine your material cost. Your only material used should be Lego pieces. Assume the following costs for the Lego bricks in determining the cost of your creation:

Lego Plates: 5 cents each

Lego Bricks: 8 cents each

Lego Special Pieces: 10 cents each (if the piece is not a plate or a normal Lego brick, it should be classified as a special price- any size or shape)

Direct Labor Cost: Direct labor cost are recorded at 25% of your total direct materials cost.

Manufacturing Overhead Cost: Manufacturing overhead costs are recorded at 30% of your direct labor cost.

Required: You should create a two-page maximum information sheet about the creation you build. The written deliverable should contain at a minimum the information listed below. However, it can not exceed two pages, thus you must also think about creativity when preparing your deliverable. You will also create a PowerPoint containing the following information and include a voice over power point in place of a presentation.

Remember you are trying to sell your project to the Executive Vice President of Product and Marketing Development; thus, you want to use creativity when presenting this information.

· A unique name for your creation along with the selling price of your Lego Kit. Make sure you use creativity in choosing the name of your creation. Comment on the reasonableness of the selling price of your creation and how you calculated the selling price.

· A discussion of the types of costs associated with manufacturing the Legos for your creation. This does not include the dollar amount of cost, just the TYPES of costs. Think through the manufacturing process and include all of the types of costs that you can identify that would be used in this manufacturing process. (Think about obvious types of items used in any manufacturing process.) You might draw a flowchart depicting the manufacturing process and comment on types of costs or use another interesting approach for presenting the information. Diagram in as much detail as you can, the manufacturing process of your Lego creation.

· Summarize all costs of production in a Production Cost Sheet format. One possible format is shown below (feel free to add any parts to the list that you might need– customize the list to your creation):

PLATES LISTED BY SIZE

QUANITITY USED

COST/UNIT

TOTAL COST

1X1

2X2

2X3

2X4

2X6

2X8

2X10

4X4

4X6

4X10

# OF UNIQUE PLATES USED

SUBTOTAL (A)

BRICKS LISTED BY SIZE

QUANTITY USED

COST/UNIT

TOTAL COST

1X1

1X2

1X3

1X4

1X8

2X2

2X4

2X6

2X8

2X10

# OF UNIQUE BRICKS USED

SUBTOTAL (B)

SPECIAL PARTS- LIST BY DESCRIPTION

QUANTITY USED

COST/UNIT

TOTAL COST

# OF UNIQUE SPECIAL PARTS

SUBTOTAL (C)

TOTAL MATERIALS COST (A) + (B) + (C)

Labor Cost

25% of total direct materials cost

Overhead Cost

30% of direct labor cost

Total Cost

Plus markup (You must choose your   markup percentage)

Total Selling Price

· Include in your written deliverable and presentation at least two pictures. One picture should be a picture of your kit “in process.” The second picture should be a picture of the actual creation. Your deliverable will be strengthened if you present several pictures (preferably in various stages).

· Identify and explain (with references to your particular project) five concepts covered in class or in your book which would help when producing and costing your creation. Do not use project cost (DM, DL, or MOH) as part of this question. These types of costs are covered above.

· Currently, there is a discussion about the effect of plastics on the future of our planet. Include a section in your presentation and deliverable that discusses whether or not it is possible to offer sustainable Lego products. Provide a list of any resource that you use in answering this question.

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