ACC512 Management Accounting For Cost And Controls

Lake Surf Company uses an automated process to clean and polish its merchandise items. For March 2017, the company conducted the following activities:

Units
Beginning work in process inventory			3,000 Items
[Direct material - 100%]
[Conversion costs - 25%]
Units placed in production			12,000 units
Unites Completed			9,000 units
Ending work in process inventory			5,000 units
[Direct material - 100%]
[Conversion costs - 60%]
Costs
Cost of beginning work in process
Direct materials			$         2,100
Conversion costs			$            485
				$        2,585
Direct material costs, current				$        9,000
Conversion costs, current				$      10,045

Using the weighted average method, determine the following:

1a. the number of equivalent units

1b. cost per equivalent unit

1c. ending work in process inventory

1d. cost of normal and abnormal spoilage

1e. cost of goods completed and transferred out during 

Lulu Company has the following budgeted sales for the next six-month period:

Month	Unit Sales
January	48,000
February	84,000
March	60,000
April	72,000
May	48,000
June	80,000

There were 69,000 units of finished goods in inventory at the beginning of January. Plans are to have an inventory of finished products that equals 100% of the following month sales plus 25% of the second month sales. Two kilograms of raw materials are required for each unit produced. From January, each kilogram of material costs $20 (up from $18 in December last year). Inventory levels for materials are equal to 40% of the needs for the next month. Lulu Company uses a FIFO inventory method for both raw material and finished goods.

Question 3: Variance Analysis 

The following standard cost data relate to the operation of Dragon Company for 2016. The standard cost per unit is based on the normal annual production of 15,000 units.

Standard cost per unit
Direct materials	4kg @ $5.00 per kg		$    20.00
Direct labour	2hrs @ $12.50 per hr		$    25.00
Variable overhead	2hrs @ $3.00 per hr		$      6.00
Fixed overhead	2 labour hrs @ $5.00 per hr		$    10.00
Total			$    61.00

Actual production in 2016 was 10,000 units. The following data was obtained from Dragon Company’s records:

Direct material purchases		45,000	Kilograms
Cost of direct materials purchases		$        202,500
Actual direct labour hours		25,000	Hours
Actual direct labour costs		$        325,000
Actual variable overhead costs		$        100,000
Actual fixed overhead		$        125,000

Question 4: Relevant Costs and Decision Making 

Gordon Manufacturing is approached by a new customer to fulfill a 4,000 unit, one-time-only special order for a product similar to the one offered to existing customers. At present, the company has excess operating capacity. The following data apply to sales to existing customers:

Variable Costs:
Direct materials	$        100
Direct labour	$          50
Manufacturing support	$          90
Marketing costs	$          35
Fixed Costs:
Manufacturing support	$        115
Marketing costs	$          40
Targeted selling price	$        500

Question 5: Balanced Scorecard 

The Balanced Scorecard can be described as a tool that “translates an organisation’s mission and strategy into a set of performance measures that provide the framework for implementing its strategy” (Horgren et al., 2014, p.585). Drawing on the textbook and no less than Ten (10) academic references, provide your description of the Balanced Scorecard, in particular its relationship to planning, performance targets, strategy, prediction, motivation, cybernetic effects and control (No more than 800 words).

This assessment task will assess the following learning outcome/s:

• be able to discuss and critique the historical and ethical development of management accounting.
• be able to apply cognitive skills in the design and operation of costing systems.
• be able to critically evaluate the design and operation of performance management systems.
• be able to explain the role of management accounting in organisational contexts and the implications for management accounting of different paradigms.
• be able to apply analytical and synthetical skills in report writing, and use quantitative techniques and computer software including using the Internet as a professional source.
• be able to create and implement computerised decision models.
• be able to critique how managers make decisions.

This assignment assesses your achievement of learning outcomes including:

• the application of cognitive skills in the design and operation of costing systems;
• the design and operation of performance management systems;
• the role of management accounting in organisational contexts:
• the implications for management accounting of different paradigms;
• the application of analytical and synthetical skills in report writing;
• quantitative techniques and computer software;
• using the Internet as a professional source;
• the history of management accounting
• the creation and implementation of computerised decision models; and
• to critique how managers make decisions.

In particular, this assignment is designed to assess your application of knowledge, understanding and skills in certain topics including cost flows in management accounting, spreadsheet construction, job and process costing, variance analysis, joint costing and budgeting.

For spreadsheet problems, good answers will comply with the spreadsheet requirements including the separation of data entry and report/solution areas, pasted normal and formula view with row and column headings and the use of the IF function where appropriate.
Review the examples in the Spreadsheet Advice PDF provided online in Interact2 Resources.

Marking criteria and standards

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 university's academic misconduct processes and will receive a grade of zero.The marking criteria for your assignments will be based on the content of the subject as identified by the learning objectives as outlined above and at the beginning of each of the various topics as outlined at the beginning of each Interact2 topic. Good spreadsheet answers will comply with the assignment requirements.

Example criteria used in marking essays/discussion questions/case studies/business reports
Note that business reports are normally more structured than essays. Find guidance on business report writing structures on the Internet. Here is one example

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?

Answers should:

• be well planned with arguments flowing logically;
• use correct sentence structure, punctuation and spelling;
• present original ideas where appropriate;
• and present a justified conclusion and acknowledge all sources.

Note:
Normal distribution curves for grades are not utilised in this subject.

You can discuss your work with each other prior to submission using the discussion forum. However, please do not post complete versions of answers to the discussion forum. Do not leave assignments until the last minute. 

• Please read this in conjunction with the assignment requirements below.
• Single spacing and small margins are welcome to save paper.
• For any business report style questions, a report structure is expected.
• Provide references throughout your assignment including page references to  texts, articles, CSU resources and URL’s of websites.
• CSU uses the APA referencing style. See
• Post enquiries to the Interact Discussions to clarify any assignment format issues.
• Acknowledge ALL sources used.
• At the end of your assignment include a complete Bibliography (Reference List) of resources actually used including the Internet, textbook, Study Topics, Software help files and videos supporting this subject.

Requirements

Assignment Requirements (also check the presentation expectations above).

1. 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.
2. Your Turnitin submission will consist of two files - a Word file and an Excel file.
3. Paste the spreadsheet solution in the word file. Your word file will provide a complete answer to every question. Use portrait orientation wherever possible. 
4. Assignment solutions must be presented in the same sequence as set out in the Study Schedule.
5. See referencing requirements above in the Presentation section.

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.

In today’s business environment we need verbal skills, writing skills, numeracy skills AND digital literacy skills. All of these skills are assessed throughout your study. It is suggested that you attempt the assignment questions week by week.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.

Answer: