Identify cost elements in the cost of a product or service

Assignment Help Finance Basics

Reference no: EM131460651

Task

The purpose of Assessment item 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.

QUESTION 1: Management accounting and costs

Identify the three major cost elements in the cost of a product or service. Define each and give examples.

QUESTION 2: Costing

Give three examples of products where more detailed recording of costs is required and three examples of products where averaging techniques may be appropriate.

QUESTION 3: Cost concepts

The monthly cost of renting a manufacturing plant is

A. a prime cost and an inventoriable cost.

B. a prime cost and a period cost.

C. a prime cost and a product cost.

D. a conversion cost and a period cost

E. a conversion cost and an inventoriable cost.?Explain your answer.

QUESTION 4: Manufacturing statement and income statement

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 in this subject outline 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.

QUESTION 5: Cost concepts

Should overtime payments be treated as direct labour, or as overhead? Explain.

QUESTION 6: Understanding the entries in the Materials Control account

The Materials Control account balances were $40 000 on 1 April and $20 000 on 30 April. During April direct materials issued to production were $70 000 and indirect materials consumed were $30 000.

Required: Show the Materials Control account in the ledger for April and a general journal entry to record the cost materials purchased during April.

QUESTION 7: Understanding the entries in the Accrued Payroll account

Salaries and wages payable to factory employees were $20 000 on 1 March and $8000 on 31 March. Gross salaries and wages paid during March totalled $50 000. March's direct labour totalled $28 000.

Required: T-account for Accrued Payroll for March and general journal entries for recording salaries and wages earned by factory employees during March.

QUESTION 8: Payroll: direct and indirect labour

J. Smith worked for 48 hours during the pay week ending Friday April 24. His normal working week consists of 40 hours, of which 35 hours were spent on production while the remaining 5 hours were non-productive idle time. Smith worked 2 hours overtime at a premium of 50% on Monday April 20 because a customer required work finished by Tuesday April 21 even if overtime had to be worked to complete it. Smith worked a further 6 hours overtime on Wednesday April 22 on other production. It is the policy of the company to pay an overtime premium of 100% after the first 3 hours on any one day. Smith's normal wage rate is $22 per hour.

Required:

(a) Calculate Smith's gross pay for the week.

(b) Indicate the sum to be treated as indirect labour.

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 page 81.

Prepare a business report outlining the traditional costing system and evaluate arguments for and against ABC. Use the Internet as a resource. The following resources will help you prepare and format your report:eportfolio.csu.edu.au/pebblepad/viewasset.aspx

Or see this resource. unilearning.uow.edu.au/report/4b.html

QUESTION 10: Direct, step and reciprocal methods of overhead allocation (20 marks) Colin and Company has two production departments and two service departments. The budgeted costs of these departments are:

	P₁ S	P₂ S	S₁ S	S₂ S
Direct (to centre) Materials & labour	200,000	150,000	10,000	15,000
Indirect costs	90,000	70,000	6,000	18,000
	290,000	220,000	16,000	33,000

The services of S1 are allocated according to the number of employees in the other departments: S2 has 20 employees, P1 30 employees and P2 30 employees.

The services of S2 are allocated 30% to S1, 20% to P1 and 50% to P2. Required:

Required: Allocate service department costs to the production departments using

(a) the direct method

(b) the step method

A. Solve manually. Use the algebraic method for the reciprocal services method.

B. Then solve with a spreadsheet. Show the Matrix algebra solution. See examples in your text.

Attachment:- Assignment File.rar

Reference no: EM131460651

Questions Cloud

Employee who handles the accounting for receivables : Internal control over accounts receivable is achieved when the employee who handles the accounting for receivables:

Calculate total estimated costs for next year : Calculate total estimated costs for next year. Calculate Preferred's net operating income assuming the company uses variable costing.

Calculate the expected arrival time : The arrival time of an elevator in a 12-story dormitory is equally likely at any time range during the next 4 minutes.

What is your maximum potential loss and gain : You buy $40 ABC call option for $4. Stock is currently trading for $48. There are still five weeks until expiration. What is your maximum potential loss-gain

Identify cost elements in the cost of a product or service : Identify the three major cost elements in the cost of a product or service. Define each and give examples

Find probability of selected tulip is tall enough to pick : The Netherlands is one of the world leaders in the production and sale of flowers. Suppose the heights of the tulips in the greenhouse of Rotterdams Fantas.

Calculate the payments on the currency swap : FINC 420 - Calculate the Payments on the Currency Swap - Calculate the cash flows for this swap - What happens at the end of year 2 with respect to payments?

Distributes agricultural equipment-linear interpolation : Alpha Corporation distributes agricultural equipment. Linear Interpolation (trial-and-error)

What is the probability that a flight arrives late : The scheduled arrival time for a daily flight from Boston to New York is 9:25 am. Historical data show that the arrival time follows the continuous uniform.

Reviews

len1460651

4/13/2017 1:59:50 AM

Your assignments will be marked as a whole with recognition being given to application of knowledge, quality thinking and application of skills. For some questions, students have a chance to demonstrate some creativity, or provide their own examples or give evidence of wider reading or structure a computer spreadsheet model in an innovative manner. We also need to avoid the snowballing effects of cumulative errors - that is, an error early in a practical question which carries through. Thus a marking system is used with deductions for errors and omissions. Full marks are possible for well structured, complete, quality answers.

4/13/2017 1:59:41 AM

In particular, this assignment is designed to assess your application of knowledge, understanding and skills in certain topics including cost flows in management accounting, functions, 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. 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.

4/13/2017 1:59:33 AM

Australian student, need it perfect and as per the guidelines. 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 including manufacturing statements, job costing systems, ABC and service department cost allocation; the role of management accounting in organisational contexts and 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.

Write a Review

Required(*) Message

User Account

All Pages