Solution Code: 1AJHC
This assignment is related to ” Management Accounting For Costs and Control” and experts at My Assignment Services AU successfully delivered HD quality work within the given deadline.
The purpose of Assessment item 1 is to establish the skills needed in the workplace for costing products and services using the appropriate processes and tools and apply analytical processes to construct accounting systems and models using workplace tools. Each question uses realistic data and the professional practices similar to that found in workplaces.
Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions. It assesses learning outcomes as listed in the assignment rationale below.
Describe the three factors that drive management accounting work. Give examples
What is meant by the control function of management accounting? Give examples
Which of the following statement is false?
A. Cost accumulation to determine the cost of goods sold is an example of the control function of management accounting work.
B. Cost represents the value of resources consumed to achieve a specific objective.
C. A cost object is an activity for which a cost is required.
D. A cost driver is an activity that causes costs to change.
E. A variable cost varies proportionately with changes in the cost driver.
Explain your answer.
Spreadsheet. See the Spreadsheet Advice PDF in Interact2 Resources and the examples in your textbook.
See the requirements within the spreadsheet template below.
Check the assignment requirements below paying particular attention to the spreadsheet requirements. Ensure you have separate data and report areas showing only formulas. Use IF functions to allow for the possibility of either a net income or a net loss. Show row and column headings and paste both a normal view and a formula view.
The following information has been obtained from the books of Ponting Manufacturing Co. Ltd at 30 September, 20X7:
Finished Goods $300 000
Raw Materials 500 000
Work in Process: Material 80 000 Labour 30 000 OH Expense 20 000
Finished Goods 120 000
Raw Materials 70 000
Work in Process: Material 30 000 Labour 20 000 OH Expense 10 000
Summary of transactions for year
Raw material purchases 2 000 000
Inward Charges on raw materials 80 000
Direct labour 660 000
Manufacturing expense 200 000
Sales of finished goods 6 000 000
Advertising 45 000
Audit Fee 3 000
Discounts to debtors 10 000
Discounts from creditors 8 000
Cartage Outwards 20 000
Insurance 15 000
Light and power (Office) 28 000
General Expenses 25 000
Rates 30 000
Salaries (Office) 450 000
Salaries (Factory) 550 000
Travellers' Commission 150 000
Adjustments are to be made in respect of the following:
(a) Accrued expenses: Salaries (Office) $2000, Salaries (Factory) $3000
(b) Insurance paid in advance, $500
(c) Estimated taxation liability for current year, $340 000
(d) Depreciation of factory plant, $25 000
(e) Insurance and rates are to be apportioned three-quarters to the factory and one-quarter to the office.
(a) manufacturing statement for the year.
(b) income statement for the year.
"If a perpetual inventory system is used for recording movements of raw materials there is no need to conduct a physical stocktake."
Do you agree? Why?
6 Understanding the entries in the Materials Control account with GST
The Materials Control account balances were $20 000 on 1 August and $10 000 on 31 August. Raw materials issued to production during August cost $60 000. (All direct materials).
Show the Materials Control, Accounts Payable and GST Clearing accounts in the ledger for August and a general journal entry to record the cost of raw materials purchased (all on credit) during August, given that a 10% GST is paid on purchases.
Salaries and wages payable to factory employees were $10 000 on 1 March and $4000 on 31 March. Gross salaries and wages paid during March totalled $40,000. March's direct labour totalled $18 000.
T-account for Accrued Payroll and general journal entries for recording salaries and wages earned by, and paid to, factory employees during March.
The Ajax Company has a gross payroll of $20,000 per day. Withholdings for PAYG taxes are $6,000 per day. There are no other deductions from employees' earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the week is paid on the following Friday.
Gross payroll consists of $12 000 direct labour, $3000 indirect factory labour, $3000 selling expenses and $2000 general and administrative expenses each day. The following calendar should be used to answer the questions:
(a) What is the total amount to be credited to Accrued Payroll in respect of July earnings?
(b) If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on July 31?
(c) Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month.
(i) Show the weekly journal entry.
(ii) Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of July.
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC). See your text page 81.
Prepare a business report outlining the traditional costing system and evaluate arguments for and against ABC. Use the Internet as a resource and academic journal articles (about 400 words excluding references). The following CSU resource will help you prepare and format your
Direct, step and reciprocal methods of overhead allocation: moderately difficult
A company has two production departments (Component Manufacture and Assembly) and two service departments (Staff Cafeteria and Materials Handling). The budgeted costs of these departments are:
The services of the Cafeteria are allocated according to the number of employees in the other departments: Materials Handling has 20 employees, Component Manufacture 50 employees and Assembly 40 employees.
The services of the Materials Handling department are allocated according to the number of budgeted requisitions per period. These are estimated as 30 for the Cafeteria, 40 for Component Manufacture and 30 for Assembly.
Allocate service department costs to the production departments using
(a) the direct method
(b) the step method
(c) the reciprocal services method.
You can choose if you wish to answer with a spreadsheet. Or not.
These assignments are solved by our professional Management Accounting For Costs & Control at My Assignment Services AU and the solution are high quality of work as well as 100% plagiarism free. The assignment solution was delivered within 2-3 Days.
Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
The control function of management consists of monitoring, measuring, evaluating and corrective steps undertaken by management accountants. In this process, the management accountants monitors and measures performance of employees. The performance is evaluated and corrective steps are taken for any adverse result. For example, standard costing is an example of controlling function of management accounting. In this system, standard costs are assigned to departmental managers on the basis of past results and expected level of activity. The actual cost is compared with past results to ascertain variances. If the actual cost is more than standard cost, variance is termed as adverse variance and if actual cost is less than standard cost, variance is termed as favourable. A detailed investigation is conducted for each type of variances and corrective steps are taken. This results in cost reduction. Thus, the primary purpose of control function of management accounting is to improve performance of employees (Mark, 2013).
According to Proctor (2006), in perpetual inventory system, inventory records are updated for each movement of inventory. Therefore, on a first note, it can appear that there is no need of physical verification of inventory in this system as inventory records are continuously updated. However, this is not correct. Physical verification of inventory is essential in perpetual inventory system also as physical inventory can differ from book inventory because of following reasons:
Thus, physical verification is necessary in perpetual inventory system also. Therefore, we do not agree with the statement that If a perpetual inventory system is used for recording movements of raw materials there is no need to conduct a physical stock take (Proctor, 2006).
In traditional costing system, overheads are allocated to products and services on the basis of machine hour or labour hour. The machine hours / labour hour does not represent correct way of allocating overheads. As overhead consists of major part of total cost of the company, incorrect overhead allocation can distort product costing of the company. The incorrect costing can lead to incorrect pricing decisions. The company may price few products too high (resulting in loss of sales) and it may also price few products too low (resulting in loss) because of incorrect costing data (Atkinson and Kaplan).
The activity based costing system has emerged because of this limitation of management accounting. In activity based costing system, costs are allocated to products and services on the basis of resource used by them. It gives recognition to the fact that different types of costs are affected because of different types of activities. Therefore, costs are allocated on the basis of activity used by the product / service. This results in accurate costing of products and services (Atkinson and Kaplan).
According to Garrison and Noreen (2014), the advantages of activity based costing system are as under:
According to Garrison and Noreen (2014), the activity based costing system also suffers from following drawbacks:
Thus, it can be seen from the above discussion that there are various advantages and limitations of activity based costing. However, the management should implement this system as it will benefit the company in long run and its limitation is not very major considering its benefits.
Find Solution for Management Accounting For Costs and Control assignment by dropping us a mail at email@example.com along with the question’s URL. Get in Contact with our experts at My Assignment Services AU and get the solution as per your specification University requirement.
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....