AC211 – Management Accounting
Trimester 2 2021
Assessment item 2
Due date: End of Week 12 Submission method options
Turnitin Link on course website
The purpose of Assessment item 2 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.
QUESTION 1 Management accounting (5 marks)
What is the purpose of management accounting reports? Give examples (about 100 words).
You may also choose to use Internet resources.
QUESTION 2 Cost concepts (8 Marks)
Distinguish between the following costs: Fixed vs variable, direct vs indirect, product vs period, manufacturing vs non-manufacturing? Give examples
QUESTION 3 Understanding the entries in the Materials Control account (6 marks)
The Materials Control account balance was $40 000 on 30 June. Raw materials purchased during June cost $160 000. Direct materials issued to production during June were $100 000 and indirect materials consumed were $60 000.
Materials Control T-account to record these transactions and to determine the balance of Materials Control on 1 June.
QUESTION 4 Understanding the entries in the Accrued Payroll account (8 marks)
Salaries and wages payable to factory employees were $20 000 on 1 March and $8 000 on 31 March. Gross salaries and wages paid during March totalled $80 000. March’s direct labour totalled $36 000.
T-account for Accrued Payroll and general journal entries for recording salaries and wages earned by, and paid to, factory employees during March.
QUESTION 5 Activity Based Costing (8 marks)
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC).
Prepare a business report outlining the traditional costing system and evaluate arguments for and against ABC. Use the Internet as a resource and academic journal articles (about 300 words excluding references). Use the Internet for advice of business report structures. For example, unilearning.uow.edu.au/report/4b.html (http://unilearning.uow.edu.au/report/4b.html)
QUESTION 6 Manufacturing statement and income statement (18 marks)
Spreadsheet. See the Spreadsheet Advice PDF and COGMS Resources on Moodle.
Check the assignment requirements below paying particular attention to the spreadsheet requirements. Ensure you have separate data and report areas with the latter showing only formulas. Use IF functions to allow for the possibility of either a net profit or a net loss. Show row and column headings and paste both a normal view and a formula view.
- Prepare a manufacturing statement for the year.
- Prepare an income statement for the year.
QUESTION 7 Service department cost allocation (18 marks)
- Create a manual, handwritten solution. Scan or use your phone to copy and paste an image in your assignment. If using a smart phone, use a free scanning app such as Camscanner, Office Lens or Google Drive. (Use the algebraic method for the reciprocal services method.)
- Solve with a spreadsheet.
QUESTION 8 Job costing (20 marks)
- Create a handwritten/manual solution OR a spreadsheet solution to the following problem. Follow the template provided. Create a spreadsheet solution showing the row and column headings and the formula view. Your report section should be completely formula driven.
Refer to the samples on the course website.
QUESTION 9 Process costing (15 marks)
Create a handwritten/manual solution OR a spreadsheet solution to the following problem. Paste a spreadsheet solution showing the row and column headings and the formula view. Your report should be completely formula driven.
Refer to the examples on Moodle. Note that in the situation below there are two production department, you are only asked to do the calculations for Process 1.
Question 10 Variance analysis (20 marks)
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.
- Answer the requirements using both a manual and spreadsheet solution. In your spreadsheet, include the IF function to determine Favourable and Unfavourable variances.
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.
Any assignments with evidence of plagiarism may be referred to the Leader’s academic misconduct processes and may receive a grade of zero.
Note that business reports are more structured than essays. Search the Internet for guidance on business report structures. Here is one example:
Written Answer Criteria
Relevance of the answer – are the important issues raised in the question identified? Did the student answer the questions?
Critical capacity. Has reference material been carefully analysed or critically accepted? Structure of the answer. Is the answer well-structured and the argument logically developed?
Writing style. Is the style concise and lucid or confused, making it difficult for the reader to get the point?
Scope of reading. Does the answer indicate a satisfactory coverage of literature relevant to the questions?
- be well planned with arguments flowing logically;
- use correct sentence structure, punctuation and spelling;
- and present a justified conclusion and acknowledge all sources.
Assignment Requirements (also check the presentation expectations above).
- On the first page of your assignment list all questions attempted and include an academic integrity statement that the work submitted is your own and that all sources used have been acknowledged.
- Your Turnitin submission will consist of two files – a Word file and an Excel file.
- Paste the spreadsheet solution and a formula view of each spreadsheet in the word file showing row and column headings for both. Paste the normal view first then the formula view. Your word file will provide a complete answer to every question. Use portrait orientation wherever possible. All data will be in the data entry area. The report area will contain no data – just formulas. You only need to submit a spreadsheet file for those problems specifying such. Name the two files with your name and unit code. Record your name, student ID number and page number as a footer on every page of your assignments. Where you are asked to make changes in a spreadsheet, please highlight the changes.
- A good spreadsheet solution format is to key in the question in a structure which allows the solution to be completely formula driven. Thus NO data/numbers are entered into the solution/report area. For spreadsheet questions formula views showing row and column headings are important.
- Create the spreadsheets as separate spreadsheets in one workbook. Name the tags at the bottom of the computer screen with the question number.
- Where appropriate, use the IF function to provide built-in checks etc. Variances? Net income or net loss?
- Keep a copy of all your work. Make copies of your work in progress in case your computer has an accident. Backup frequently.
- It is imperative that you retain a copy of your assignments including your spreadsheets. Complete feedback will be provided to you with your grade and comments by the assessor.
You can discuss your work with other students prior to submission using the discussion forum. However, please do not post complete versions of answers to the forum. Do not leave assignments until the last minute.
The first page of your assignment should consist of the following parts: subject code and name;
your name and student ID number; assignment task number;
list of questions attempted and a list of questions not attempted;
dates and details of any extension granted; usually include a copy of the approval email; an academic integrity statement that the work submitted is your own;
an acknowledgement of all your sources, and
a footer with your name, student ID and page number.
Solutions to questions should vary in length according to the nature of the question. Solutions to exercises and problem questions should be in a similar form to that demonstrated in the text.