Reference no: EM131634186

Assessment Task

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.

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. Follow the template provided.

Play the Job cost podcasts and work through the example problem in those podcasts. 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 set out above. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.

Required - Given this incomplete information, complete the template below and calculate the beginning balance of the Direct Materials Control account. If necessary, round to whole dollars.

B. Management accounting and history. Taking the Great Pyramid of Giza 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).

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 set out above. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.

Review the four process costing videos provided in Interact Resources. Note that in the situation below there are two production departments.

Required - Using the weighted average cost method, determine the cost of finished goods complete during May, and the cost of closing work in process in both processing departments as at 31 May, 20X9.

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 set out above. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.

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 $250 000. 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 set out above. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.

A. 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. 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 set out above. In particular, check the spreadsheet requirements and the Spreadsheet Advice PDF.

A. Financial model to forecast Income Statements for 5 years (see your text page 267) (15 marks)

From the following information prepare a financial model that would produce budgeted income statements and statements of retained earnings for the 5 years 20X2 to 20X6 for Unique Traders Ltd. All necessary calculations should be performed by the computer.

Unique trades in one product only. In 20X1 sales were 30 000 units and volume is expected to increase by 8% each year (compound) to a maximum of 40 000 units per year.

Unit selling price in the years 20X2, 20X3, 20X4 is expected to equal the unit cost of purchases made in the year, marked up by 30% whilst in 20X5 and 20X6 the mark-up is expected to be 35% on purchase cost.

Unit purchase costs for the 5 years are estimated at 20X2 $5.10, 20X3 $5.36, 20X4 $5.68, 20X5 $6.02, 20X6 $6.50.

Closing inventory is to be 15% of estimated sales units for the following year. Closing inventory for 20X1, however, was only 3600 units valued at $17 640. Assume a FIFO cost flow.

General and administrative expenses are expected to equal 14% of sales revenue in each year.

The tax rate is expected to be 40%.

Provide for dividends equal to 65% of after tax profit.

Retained earnings at the end of 20X1 amounted to $3500.

B. How can budgeting be viewed as a political process?

Find a cartoon/comic strip image on the Internet to illustrate your discussion. Explain the relevance of this image to your answer.

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.

Attachment:- Assignment Files.rar