Management Accounting for Costs & Control Assignment -
Learning outcomes - On successful completion of this subject, you should:
- be able to discuss and critique the historical and ethical development of management accounting;
- be able to apply cognitive skills in the design and operation of costing systems;
- be able to critically evaluate the design and operation of performance management systems;
- be able to explain the role of management accounting in organisational contexts and the implications for management accounting of different paradigms;
- be able to apply analytical and synthetical skills in report writing, and use quantitative techniques and computer software including using the Internet as a professional source;
- be able to create and implement computerised decision models; and
- be able to critique how managers make decisions.
Assessment item 1 -
Task - 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 applying 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 as listed in the learning outcomes assignment rationale below.
QUESTION 1 Panopticism
See your text chapter 1, page 4. Describe Panopticism. How may it be relevant to management accounting? Give examples (about 200 words). Use images to enhance your answer.
QUESTION 2 Control
List and explain three functions of management accounting. Refer to the text chapter 1. Give examples (about 150 words).
QUESTION 3 Checklists
Explain how the Van Halen rock band used checklists as a control device. See chapter 1 of your text. Use Internet resources to enhance your answer (about 200 words).
QUESTION 4 Manufacturing statement and income statement
Spreadsheet. See the Spreadsheet Advice PDF in Interact2 Resources and the examples in your textbook.
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spreadsheeting skills. Having spreadsheet skills will enhance your future employment prospects.
Check the assignment requirements below paying particular attention to the spreadsheet requirements.
Ensure you have separate data and report areas with the latter showing only formulas. Use IF functions to allow for the possibility of either a net profit or a net loss. Show row and column headings and paste both a normal view and a formula view.
QUESTION 5 Labour cost concepts
See chapter 2 of your text.
A. "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?
B. Should overtime payments be treated as direct labour, or as overhead? Explain.
QUESTION 6 Understanding the entries in the Materials Control account
See chapter 2 of your text.
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spreadsheeting skills. Having spreadsheet skills will enhance your future employment prospects.
Spreadsheet this problem
The Materials Control account balances were $60 000 on 1 April and $50 000 on 30 April. Raw materials purchased during April were $80 000. Direct materials issued to production were $60 000.
Required: Show the Materials Control T-account in the ledger for April and a general journal entry to record the cost of indirect materials consumed during April.
QUESTION 7 Understanding the entries in the Accrued Payroll account
See chapter 2 of your text
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spread sheeting skills. Having spreadsheet skills will enhance your future employment prospects.
And spreadsheet this problem.
Salaries and wages payable to factory employees were $18 000 on 1 July. July's factory salaries and wages expenses were $50 000 direct labour and $22 000 indirect labour. Salaries and wages paid during July were $70 000.
Required: Show the T-account for Accrued Payroll for July. What was the balance in the account at the end of July?
QUESTION 8 Payroll entries
See chapter 2 of your text.
Spreadsheet not required.
The Patel Company has a gross payroll of $8 000 per day. Withholdings for PAYG taxes are $2400 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 $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions:
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September
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Sun
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Mon
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Tue
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Wed
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Thu
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Fri
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Sat
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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13
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14
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15
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16
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17
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18
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19
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20
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21
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22
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23
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24
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25
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26
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27
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28
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29
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30
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Required:
(a) What is the total amount to be credited to Accrued Payroll in respect of September earnings?
(b) If balance day adjustments are performed at the end of each month, what would be the balance in the Accrued Payroll account at the close of business on September 30?
(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 September.
QUESTION 9 Activity Based Costing
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC). See your text chapter 3. Prepare a business report comparing the traditional costing system with ABC and evaluate arguments for and against ABC.
Use the Internet as a resource and academic journal articles (about 500 words excluding references).
Use the Internet for advice of business report structures.
QUESTION 10 Service department cost allocation
Review the examples in your textbook.
A firm has two service departments, S1 and S2, and two production departments, P1 and P2. The primary allocation of indirect manufacturing expenses is as follows:
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S1
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S2
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S3
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S4
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Total
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$20,000
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$25,000
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$60,000
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$45,000
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$150,000
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The percentage allocation of service centre costs is:
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S1
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S2
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P3
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P4
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Total
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S1
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0
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20
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60
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20
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100
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S2
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15
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0
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35
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50
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100
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Re-allocate the service center costs to the production departments by
(a) the direct method
(b) the step method
(c) the reciprocal services method
Required:
1. Create a manual, handwritten solution. Scan or use your phone to copy and paste an image in your assignment. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which app you chose.
Use the algebraic method for the reciprocal services method.
2. Solve with a spreadsheet. Also show the Matrix algebra solution.
Include in your solutions the T accounts for Overhead as shown on page 93 of your text.
Rationale - This assignment assesses your achievement of learning outcomes including:
- the application of cognitive skills in the design and operation of costing systems;
- being able to critically evaluate the design and operation of performance management systems
- manufacturing statements,
- job costing systems,
- Activity Based Costing (ABC),
- methods of service department cost allocation;
- the role of management accounting in organisational contexts,
- the implications for management accounting of different paradigms;
- the application of analytical and synthetical skills in report writing;
- quantitative techniques and computer software including
- using the Internet as a professional source;
- the creation and implementation of computerised decision models and;
- to critique how managers make decisions.
In particular, this assignment is designed to assess;
- your application of knowledge,
- understanding and skills in certain topics including cost flows in management accounting,,
- terminology,
- manufacturing statements,
- spreadsheet construction,
- product costing,
- materials acquisition systems,
- labour payment systems,
- accounting for overhead,
- business report writing,
- activity based costing, (ABC) and,
- the allocation of overhead including service department costs.
Assessment item 2 -
Task - Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions. It assesses as listed in the learning outcomes assignment rationale below.
The purpose of this assignment is to continue to develop skills in costing systems with an emphasis on the role of control in managing the production of goods and services efficiently in the workplace. Each question builds on the knowledge gained through the first assignment to develop the concepts of management accounting control through costing. Each question uses realistic data and professional practices similar to that found in workplaces.
QUESTION 1 Job costing
A. Create a handwritten/manual solution AND a spreadsheet solution to the following problem. A Follow the template provided. Play the Job Cost podcasts from Interact Resources and work through the example problem in those podcasts. The example problem in the podcasts is similar to the Obese problem. Create a spreadsheet solution showing the row and column headings and the formula view. Your report section should be completely formula driven. Scan or use your phone to copy and paste an image of your handwritten attempt into your assignment. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which app you chose.
Design your spreadsheet to meet the assignment requirements. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.
See your text for a similar example.
B. Management accounting and history
Taking the Roman Coliseum as an example, describe how modern cost management accounting could be applied to a current attempt to recreate this structure. Be creative in your discussion (about 200 - 300 words). Add images to your answer.
QUESTION 2 Process costing
Create a handwritten/manual solution AND a spreadsheet solution to the following problem. Scan or use your phone to capture an image and paste a copy of your manual solution in your assignment submission. Consider using a smart phone scanning app. Also paste a spreadsheet solution showing the row and column headings and the formula view. Your report should be completely formula driven. Design your spreadsheet to meet the assignment requirements. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.
QUESTION 3 Joint costing - decision making
Create a handwritten/manual solution AND a spreadsheet solution to the following problem. Scan or use your phone to capture an image and paste a copy of your manual solution in your assignment submission. Also paste a spreadsheet solution showing the row and column headings and the formula view. Your report should be completely formula driven.
Design your spreadsheet to meet the assignment requirements. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.
See your text for examples.
Joint cost allocation: additional processing beyond split-off point
In a certain production process 100 000 kg of a single raw material were processed at a cost of $350 000. At split-off two intermediate products, A and B emerged, weighed as 60 000 kg of A and 40 000 kg of B. A was processed further at a cost of $45 000 to produce C, and B was processed further at a cost of $25 000 to produce D. C sold for $4.50 per kg.
Required:
(a) If A was allocated $187 500 of the joint production costs under the net realisable value method, what was the selling price of D?
(b) Suppose the firm receives an offer to buy all of product A for $2 per kg at the split-off point. Would the firm be better off selling A or processing further to produce C? By how much?
Question 4 Variance analysis
Create a handwritten/manual solution AND a spreadsheet solution to the following problem. Scan or use your phone to capture an image and paste a copy of your manual solution in your assignment submission. Also paste a spreadsheet solution showing the row and column headings and the formula view. Your report should be completely formula driven.
Design your spreadsheet to meet the assignment requirements. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.
The problem is adapted from P7-13 in your text page 202.
Required:
A. Calculate the materials price variance (on purchase) and materials usage variance. What is the actual direct labour rate per hour?
Answer the requirements using both a manual and spreadsheet solution. In your spreadsheet, include the IF function to determine Favourable and Unfavourable variances.
B. Prepare a Business Report as if for senior management critically evaluating the purpose of variance analysis and other areas in an organisation where variance analysis would be useful and the practical relevance of detailed overhead variance analysis. See the reading by Murray Wells. Search the CSU library for the ACC512 readings. Also find and use at least one other academic reading. Suggested word limit about 500 words. Ensure that your answer is in business report format.
QUESTION 5 Budgeting
Create a handwritten/manual solution AND a spreadsheet solution to the following problem. Scan or use your phone to capture an image and paste a copy of your manual solution in your assignment submission. Also paste a spreadsheet solution showing the row and column headings and the formula view. Your report should be completely formula driven.
Design your spreadsheet to meet the assignment requirements. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.
A. Budget
B. How can budgeting be viewed as a choice process?
Use your text as a reference - see page 249. Find a cartoon/comic strip image on the Internet to illustrate your discussion. Explain the relevance of this image to your answer. Find and use at least one academic article relevant to your discussion.
Rationale - This assignment assesses your achievement of learning outcomes including:
- the application of cognitive skills in the design and operation of costing systems;
- the design and operation of performance management systems;
- the role of management accounting in organisational contexts:
- the implications for management accounting of different paradigms;
- the application of analytical and synthetical skills in report writing;
- quantitative techniques and computer software;
- using the Internet as a professional source;
- the history of management accounting
- the creation and implementation of computerised decision models; and
- to critique how managers make decisions.
In particular, this assignment is designed to assess your application of knowledge, understanding and skills in certain topics including cost flows in management accounting, spreadsheet construction, job and process costing, variance analysis, joint costing and budgeting.
For spreadsheet problems, good answers will comply with the spreadsheet requirements including the separation of data entry and report/solution areas, pasted normal and formula view with row and column headings and the use of the IF function where appropriate.
Review the examples in the Spreadsheet Advice PDF provided online in Interact2 Resources.
Attachment:- Assignment File.rar