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. Did you create the manual solution or the spreadsheet solution first? Why?
C. Contrast job costing, process costing and operations costing. Give your own examples
QUESTION 2 - Process costing
Prepare a spreadsheet to solve the following process costing problem.
Watch the four Process Costing videos provided in Interact Resources.
QUESTION 3 - Joint costing
Create a manual/handwritten solution AND a spreadsheet to solve the following joint cost problem. You may choose to scan or use your cell phone to copy and paste the manual solution.
The DubboRubbo Liniment Company manufactures liniment. Three processes are involved.
Process 1 in which all chemicals etc. are added incurs costs of $124 000 for an output of 17 600 kg. Of this, 1600 kg is a sludge which is generally sold to road builders. The remaining 16 000 kg receives further processing. Of this 16 000 kg, 9000 kg goes on to Process 2 to become 9000 kg of A-grade liniment for an extra cost of $72 000. The A-grade liniment sells for $28 per kg. The other 7000 kg goes to Process 3 to become 7000 kg of B-grade liniment for an extra cost of $48 000. B-grade sells at $24 per kg. Sludge sells at $3.50 per kg, but costs $1 per kg to package safely.
Required:
(a) Assuming no opening or closing inventory is held, calculate the gross profit for the major products, using
(i) the physical units approach to allocate joint costs.
(ii) the net realisable value approach to allocate joint costs.
(b) Explain the reasons for your treatment of the by-product revenue. Describe one other way in which the by-product could have been dealt with and how this would have affected your answers to (a).
Question 4 - Variance analysis
A. Answer the requirements using a spreadsheet AND a handwritten solution. Scan or use your phone to paste a copy of your handwritten solution in your assignment. Include the IF function to determine Favourable and Unfavourable variances.
B. Prepare a Business Report as if for senior management why the materials price variance should be calculated on purchase, 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
A. Prepare a handwritten solution and a spreadsheet solution. Scan or use your phone to take a picture and paste in your submission.
B. Write a business report describing budgeting as a non technical process. Refer to satisficing, budgeting as a political process and budget ploys. Give examples. About 500 words excluding references. Use the Internet as a reference AND refer to one or more relevant academic research paper. See the text page 249.
C. Find a humorous cartoon image relevant to budgeting on the web. Paste the image in your assignment and provide a brief explanation of the image.