Assignment Task: Farm Organic Ltd
Problem 1:
1.1. Value chain analysis usefulness.
1.2 The different benefits of the value chain analysis through different use of it in the decision-making process of Farm Organic Ltd.
1.3 How did the Value chain analysis helps the decision-making process of the different primary process and supporting service.
Problem 2:
2.1 Prepared Cost of Goods Manufactured Statement for the month ended 31st July 2019.
2.2 FOL Cost of sales for the month ended 31st July 2019.
2.3 FOL's Gross profit for the month ended 31st July 2019.
2.4 Explanation of the cost of goods manufactured statement for the decision-making process of the company.
Problem 3:
3.1 Allocation of supporting department cost into operating department through the direct method.
3.2 Allocation of supporting department cost into operating department through step down method.
3.3 Allocation of supporting department cost into operating department through the reciprocal method.
Problem 4:
4.1 The estimated overhead allocation rate that should be used for the research department.
4.2 The total overhead allocated to Job Gargantua.
4.3 The cost per unit of this job.
4.4 Calculation of the under or over-application of the overhead cost.
4.5 Journal entry to record the allocation of overhead and under application of overhead.
4.6 Total Profit and profit per unit of Job Gargantua.
Problem 5:
5.1.1 Cost of goods transferred out under FIFO Method.
5.1.2 Cost of goods transferred out under weighted average cost method.
5.2 Journal entry to record production cost.
5.3 Explain the difference in the cost calculated in the FIFO method and the weighted average cost method.
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