HI5017
\nMANAGERIAL ACCOUNTING
\nFINAL ASSESSMENT
\nTRIMESTER 2, 2022
\nTIME ALLOWED: 24 hours
\nAssessment Weight: 50 total marks
\nInstructions:
\n\u2022 All questions must be answered by using the answer boxes provided in this paper.
\n\u2022 Completed answers must be submitted to Blackboard by the published due date and time.
\nPlease ensure you follow the submission instructions at the end of this paper.
\nPurpose:
\nThis assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topic (sample nursing essay examples by the best nursing assignment writing service)s covered in this unit.<\/p>\n
Question 1 (7 marks)
\na) Discuss one of the costing systems you found interesting in this unit from the list below, and provide 2 reasons for what was interesting about it. (4 marks)
\nWord Limit: 250 words
\nStudents are to reflect on any one of the costing systems stated below:
\n\u2022 Job Costing system
\n\u2022 Process Costing system
\n\u2022 Hybrid Costing or Operation Costing system
\n\u2022 Service Costing system
\nANSWER a): ** Answer box will enlarge as you type
\nb) Best Toys Company manufactures a variety of battery-operated toys. Information on its popular product 3D is provided to you. Materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the month of October 2022 are as follows:
\nProduction Data- 3D Popular Toy Units Percentage Complete
\nWork in process units, October 1 500 80%
\nUnits started in production 1000
\nWork in process units, October 31 400 40%
\nCost Data- 3D Popular Toy
\nWork in process, October 1
\nMaterials $700
\nConversion costs 600 $1,300
\nDirect materials 2,500
\nDirect labor 1,680
\nManufacturing overhead 1,340
\nRequired:
\nCalculate the equivalent units of production for materials and conversion costs using the weighted average method. (3 marks)
\nSHOW YOUR WORKINGS
\nANSWER b):
\nQuestion 2 (11 marks)
\na) Based on your individual assignment, describe what you have learnt about ABC system implementation in Australia. What was interesting, and what lessons did you learn?
\nWord limit: 250 words (3 marks)
\nANSWER a):
\nb) When would it be necessary to have departmental overhead rates instead of a single plant-wide overhead rate?
\nWord limit: 150 words (2 marks)
\nANSWER b):
\nc) Returning from a seminar on ABC system, the CEO of Momi Company has requested the management accountant to consider switching to ABC. Information is collected for the three approaches to allocating manufacturing overhead, and you are to Help in deciding which of the three approaches the company should use to apply overhead to products. The CEO of Momi Company has suggested that the management accountant consider transitioning to the ABC system after returning from a seminar on the ABC method. The information for the three techniques to allocating manufacturing overhead is being collected, and you are to aid in selecting which of the three approaches the organization should employ to apply overhead to goods.
\nInformation for each approach is provided as follows:
\n\u2022 One plant-wide rate. The predetermined overhead rate is 150 percent of the direct labour cost.
\n\u2022 Direct labour costs for the year totalled $100,000.
\n\u2022 Department rates. The Machining department uses a rate of $50 per machine hour, and the Assembly department uses a rate of $45 per direct labour hour.
\n\u2022 During the year, the Machining department used 1,200 machine hours, and the Assembly department used 1,100 direct labour hours.
\n\u2022 Activity-based costing rates. Three activities were identified, and rates were calculated for each activity.
\nPurchase requisitions $18 per requisition processed
\nProduction setup $40 per setup
\nQuality control $85 per inspection
\n\u2022 During the year, 850 purchase requisitions were processed, 1,300 production setups were performed, and 400 products were inspected.
\nRequired:
\ni. Using the plant-wide method, calculate the amount of overhead applied to products. (1 mark)
\nii. Using departmental overhead rates, calculate the amount of overhead applied to products. (1 mark)
\niii. Using the activity-based costing approach, calculate the amount of overhead applied to products. (1.5 marks)
\niv. Based on your results, which method(s) have overcosted the company’s products? (1 mark)
\nv. Which method would you recommend for the company, and state the reason for your choice. (1.5 marks)
\nSHOW YOUR WORKINGS
\nANSWER c):
\ntivity-based costing should improve the accuracy of cost information. Allocating costs to activities
\nrather than departments enable the identification of even more appropriate allocation bases. For example ABC
\nuses both volume and non-volume based cost drivers as allocation bases and attempts to aggregate costs that
\nhave similar behaviour patterns. Again, however, there is an additional cost in analysing costs and cost drivers at
\nan activity level rather than at a department level.
\nsing activity-based costing should improve the accuracy of cost information. Allocating costs to activities
\nrather than departments enables the identification of even more appropriate allocation bases. For example ABC
\nuses both volume and non-volume based cost drivers as allocation bases and attempts to aggregate costs that
\nhave similar behaviour patterns. Again, however, there is an additional cost in analysing costs and cost drivers at
\nan activity level rather than at a department level.
\nsing activity-based costing should improve the accuracy of cost information. Allocating costs to activities
\nrather than departments enables the identification of even more appropriate allocation bases. For example ABC
\nuses both volume and non-volume based cost drivers as allocation bases and attempts to aggregate costs that
\nhave similar behaviour patterns. Again, however, there is an additional cost in analysing costs and cost drivers at
\nan activity level rather than at a department level.
\nQuestion 3 (7 marks)
\nExquisite Shoes are stockists of industry-approved safety boots. The company is planning for the quarter ending in December and has supplied the following information:
\nPurchases
\nThe forecast purchases of raw materials for the next three months are:
\nMonth Purchases ($)
\nOctober 70 000
\nNovember 75 000
\nDecember 80 000
\n40% of its purchases are in cash, and the remainder is on credit. Of the credit purchases, 50% is paid in the month of purchase, and the other 50% is paid in the month after the purchase. The September 30 accounts payable balance is $30 000
\nRequired:
\na) Prepare a schedule of expected cash disbursements for each of the three months (October \u2013 December), including the total cash payments of raw materials for the quarter. (5 marks)
\nANSWER a):
\nb) Suggest two ways Exquisite Shoes can improve its cash position in the next quarter.
\n(2 marks)
\nANSWER b):
\nQuestion 4 (7 marks)
\na)
\ni) Explain in your own words how using ROI as a performance measure can lead to decisions that may harm a company’s future competitiveness. (2 marks)
\nii) Recommend a solution to using ROI as a performance measure. (1 mark)
\nWord limit: 250 words
\nANSWER a):
\nb) Explain the value strategy maps offer to an environmental consulting firm, which provides expert assessment and advisory services for their clients on matters pertaining to the management of environmental issues. Include an example to support your answer.
\nWord limit: 250 words (4 marks)
\nANSWER b):
\nQuestion 5 (11 marks)
\nScooters Ltd sells three types of scooters. It has fixed costs of $258,000 per month. The sales and variable costs of these products for April are shown below:
\nS1 S2 S3
\nSales $1 000 000 $1 500 000 $2 500 000
\nVariable costs $ 700 000 $ 900 000 $1 250 000
\na) Determine the sales mix of the three products. (1.5 marks)
\nb) Calculate the break-even point in sales dollars for the company. (3.5 marks)
\nc) Calculate the break-even point in sales dollars for each scooter. (1.5 marks)
\nd) Calculate the margin of safety at the present sales level in dollars. (1.5 marks)
\ne) Discuss the weaknesses of the CVP analysis technique as a financial planning tool.
\nCan flexible budgets be used to overcome its weaknesses? Explain.
\nWord limit: 200 words (3 marks)
\nSHOW YOUR WORKINGS
\nANSWER:
\nQuestion 6 (7 marks)
\na) In your own words, suggest to the Manager of the New Products Division of a mobile phone company about the pricing of new products.
\nWord limit: 250 words (4 marks)
\nANSWER a):
\nb) Electroz Ltd has the following data concerning a model electric car it manufactures:
\n\u2022 Variable manufacturing cost $ 45
\n\u2022 Applied fixed overhead $ 15
\n\u2022 Variable selling and administrative cost $ 10
\n\u2022 Allocated fixed selling and administrative cost $ 18
\nRequired:
\nIf the company uses cost-plus pricing based on manufacturing costs, determine the mark-up percentage used by the company to obtain a price of $150. (3 marks)
\nSHOW YOUR WORKINGS
\nANSWER b):
\nEND OF FINAL ASSESSMENT
\nSubmission instructions:
\nBefore you submit your assessment, please check all of the following:
\n\u2022 You have named your file with your Student Number and Unit Code e.g. AMG12345 HI5017
\nIt is critical you follow this file name instruction to ensure the file belongs to you.
\n\u2022 You have saved your file in MICROSOFT WORD format only. No other format is accepted.
\n\u2022 You have checked you are submitting the correct document as special consideration is not granted if you make a mistake.
\nOnce you have checked the above:
\nUpload your file to the appropriate link on Blackboard.
\nYou have two attempts to submit your assessment with only the final submission being marked.
\n** Note: All submissions are automatically passed through SafeAssign to assess academic integrity<\/p>\n","protected":false},"excerpt":{"rendered":"
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