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ACC200 Introduction To Management Accounting5

tag 0 Download 5 Pages / 1,241 Words tag 25-05-2020
  • Course Code: ACC200
  • University: Kings Own Institute
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  • Country: Australia

 Question:

(a)Describe the circumstances when a job order costing system should be used

(b)Calculate,showing working, the balance in Turramurra Furniture Company’s Work in Process Account at 30 June 2017.

(c)Calculate the cost of the chairs in the Finished Goods Inventory at 30 June 2017

(d)Actual manufacturing overhead incurred in June amounted to 217,000 .Calculate the over or underapplied overhead for the year.

(e) Outline two different treatments for the over or underapplied overhead balances when using a job order costing system.

( f)If the Turramurra Furniture Company considers that a variation of $40,000 in the over or underapplication of overhead is material and must be dealt with appropriately in the accounts is the variation(over or underapplication of overhead) material? If it is what approach does the company use to adjust the over or underapplication of overhead?

(g) The company is concerned with its calculation and application of overhead and has asked you to advise if it should consider using Activity Based Costing as it is considering expanding its product range and its concerns about overhead application .   
 
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