HI5017
MANAGERIAL ACCOUNTING
FINAL ASSESSMENT
TRIMESTER 2, 2022
TIME ALLOWED: 24 hours
Assessment Weight: 50 complete marks
Directions:
• All questions should be answered by utilizing the reply containers supplied on this paper.
• Accomplished solutions should be submitted to Blackboard by the printed due date and time.
Please make sure you comply with the submission directions on the finish of this paper.
Goal:
This Assessment consists of six (6) questions and is designed to evaluate your stage of information of the important thing subjects coated on this unit.
Question Assignment 1 (7 marks)
a) Talk about one of many costing methods you discovered fascinating on this unit from the record beneath, and supply 2 causes for what was fascinating about it. (four marks)
Phrase Restrict: 250 phrases
College students are to replicate on any one of many costing methods acknowledged beneath:
• Job Costing system
• Course of Costing system
• Hybrid Costing or Operation Costing system
• Service Costing system
ANSWER a): ** Reply field will enlarge as you kind
b) Greatest Toys Firm manufactures a wide range of battery-operated toys. Info on its fashionable product 3D is supplied to you. Supplies are added at first of the manufacturing course of, and conversion prices are incurred uniformly. Manufacturing and price information for the month of October 2022 are as follows:
Manufacturing Information- 3D Well-liked Toy Items Proportion Full
Work in course of items, October 1 500 80%
Items began in manufacturing 1000
Work in course of items, October 31 400 40%
Price Information- 3D Well-liked Toy
Work in course of, October 1
Supplies $700
Conversion prices 600 $1,300
Direct supplies 2,500
Direct labor 1,680
Manufacturing overhead 1,340
Required:
Calculate the equal items of manufacturing for supplies and conversion prices utilizing the weighted common technique. (three marks)
SHOW YOUR WORKINGS
ANSWER b):
Question Assignment 2 (11 marks)
a) Primarily based in your particular person project, describe what you may have learnt about ABC system implementation in Australia. What was fascinating, and what classes did you be taught?
Phrase restrict: 250 phrases (three marks)
ANSWER a):
b) When wouldn’t it be essential to have departmental overhead charges as a substitute of a single plant-wide overhead fee?
Phrase restrict: 150 phrases (2 marks)
ANSWER b):
c) Coming back from a seminar on ABC system, the CEO of Momi Firm has requested the administration accountant to think about switching to ABC. Info is collected for the three approaches to allocating manufacturing overhead, and you’re to help in deciding which of the three approaches the corporate ought to use to use overhead to merchandise. The CEO of Momi Firm has prompt that the administration accountant contemplate transitioning to the ABC system after getting back from a seminar on the ABC technique. The data for the three methods to allocating manufacturing overhead is being collected, and you’re to help in choosing which of the three approaches the group ought to make use of to use overhead to items.
Info for every method is supplied as follows:
• One plant-wide fee. The predetermined overhead fee is 150 % of the direct labour value.
• Direct labour prices for the yr totalled $100,000.
• Division charges. The Machining division makes use of a fee of $50 per machine hour, and the Meeting division makes use of a fee of $45 per direct labour hour.
• Through the yr, the Machining division used 1,200 machine hours, and the Meeting division used 1,100 direct labour hours.
• Exercise-based costing charges. Three actions had been recognized, and charges had been calculated for every exercise.
Buy requisitions $18 per requisition processed
Manufacturing setup $40 per setup
High quality management $85 per inspection
• Through the yr, 850 buy requisitions had been processed, 1,300 manufacturing setups had been carried out, and 400 merchandise had been inspected.
Required:
i. Utilizing the plant-wide technique, calculate the quantity of overhead utilized to merchandise. (1 mark)
ii. Utilizing departmental overhead charges, calculate the quantity of overhead utilized to merchandise. (1 mark)
iii. Utilizing the activity-based costing method, calculate the quantity of overhead utilized to merchandise. (1.5 marks)
iv. Primarily based in your outcomes, which technique(s) have overcosted the corporate’s merchandise? (1 mark)
v. Which technique would you suggest for the corporate, and state the rationale on your alternative. (1.5 marks)
SHOW YOUR WORKINGS
ANSWER c):
tivity-based costing ought to enhance the accuracy of value info. Allocating prices to actions
slightly than departments allow the identification of much more applicable allocation bases. For instance ABC
makes use of each quantity and non-volume primarily based value drivers as allocation bases and makes an attempt to combination prices that
have related behaviour patterns. Once more, nevertheless, there’s a further value in analysing prices and price drivers at
an exercise stage slightly than at a division stage.
sing activity-based costing ought to enhance the accuracy of value info. Allocating prices to actions
slightly than departments permits the identification of much more applicable allocation bases. For instance ABC
makes use of each quantity and non-volume primarily based value drivers as allocation bases and makes an attempt to combination prices that
have related behaviour patterns. Once more, nevertheless, there’s a further value in analysing prices and price drivers at
an exercise stage slightly than at a division stage.
sing activity-based costing ought to enhance the accuracy of value info. Allocating prices to actions
slightly than departments permits the identification of much more applicable allocation bases. For instance ABC
makes use of each quantity and non-volume primarily based value drivers as allocation bases and makes an attempt to combination prices that
have related behaviour patterns. Once more, nevertheless, there’s a further value in analysing prices and price drivers at
an exercise stage slightly than at a division stage.
Question Assignment three (7 marks)
Beautiful Sneakers are stockists of industry-approved security boots. The corporate is planning for the quarter ending in December and has provided the next info:
Purchases
The forecast purchases of uncooked supplies for the subsequent three months are:
Month Purchases ($)
October 70 000
November 75 000
December 80 000
40% of its purchases are in money, and the rest is on credit score. Of the credit score purchases, 50% is paid within the month of buy, and the opposite 50% is paid within the month after the acquisition. The September 30 accounts payable steadiness is $30 000
Required:
a) Put together a schedule of anticipated money disbursements for every of the three months (October – December), together with the whole money funds of uncooked supplies for the quarter. (5 marks)
ANSWER a):
b) Counsel two methods Beautiful Sneakers can enhance its money place within the subsequent quarter.
(2 marks)
ANSWER b):
Question Assignment four (7 marks)
a)
i) Clarify in your personal phrases how utilizing ROI as a efficiency measure can result in selections that will hurt an organization’s future competitiveness. (2 marks)
ii) Advocate an answer to utilizing ROI as a efficiency measure. (1 mark)
Phrase restrict: 250 phrases
ANSWER a):
b) Clarify the worth technique maps provide to an environmental consulting agency, which supplies knowledgeable Assessment and advisory providers for his or her shoppers on issues pertaining to the administration of environmental points. Embody an instance to help your reply.
Phrase restrict: 250 phrases (four marks)
ANSWER b):
Question Assignment 5 (11 marks)
Scooters Ltd sells three varieties of scooters. It has fastened prices of $258,000 per 30 days. The gross sales and variable prices of those merchandise for April are proven beneath:
S1 S2 S3
Gross sales $1 000 000 $1 500 000 $2 500 000
Variable prices $ 700 000 $ 900 000 $1 250 000
a) Decide the gross sales mixture of the three merchandise. (1.5 marks)
b) Calculate the break-even level in gross sales for the corporate. (three.5 marks)
c) Calculate the break-even level in gross sales for every scooter. (1.5 marks)
d) Calculate the margin of security at present gross sales stage in . (1.5 marks)
e) Talk about the weaknesses of the CVP Assessment approach as a monetary planning instrument.
Can versatile budgets be used to beat its weaknesses? Clarify.
Phrase restrict: 200 phrases (three marks)
SHOW YOUR WORKINGS
ANSWER:
Question Assignment 6 (7 marks)
a) In your personal phrases, recommend to the Supervisor of the New Merchandise Division of a cell phone firm concerning the pricing of latest merchandise.
Phrase restrict: 250 phrases (four marks)
ANSWER a):
b) Electroz Ltd has the next information regarding a mannequin electrical automotive it manufactures:
• Variable manufacturing value $ 45
• Utilized fastened overhead $ 15
• Variable promoting and administrative value $ 10
• Allotted fastened promoting and administrative value $ 18
Required:
If the corporate makes use of cost-plus pricing primarily based on manufacturing prices, decide the mark-up proportion utilized by the corporate to acquire a worth of $150. (three marks)
SHOW YOUR WORKINGS
ANSWER b):
END OF FINAL ASSESSMENT
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