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Unit: ACC203 – Management Accounting Submission Date: 7th April 2018 before 23.59 pm Weighting: The assignment is worth 40% of the total unit weight. Instructions: 1. Students are required to cover...

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Unit:    ACC203 – Management Accounting
Submission Date:    7th April 2018 before 23.59 pm
Weighting:    The assignment is worth 40% of the total unit weight.
Instructions:
1. Students are required to cover all stated requirements.
2. Your answer must be both uploaded to Moodle in word file and no hard copy needed.
3. You need to support your answers with appropriate Harvard style references where necessary.
4. Only include information in your appendixes that has been directly refe
ed to in the body of your document.
5. Include a title/cover page containing the subject title and code and the name, student id numbers.
6. Please save    the document as ACC203_B1_T1_first name_Surename_Student Numbe
Eg: ACC203AT2_John_Smith_ XXXXXXXXXX
1
You are required to finish each of these questions, total 40 marks. Please give the solutions in detail, show calculations and submit the solutions to Moodle using a single file, it can be Excel format, Word format or PDF format, no requirement on word limits, if use any references, please refer to Harvard style.
Question 1: Designing a new management accounting system (10 Marks)
You have just been appointed as the new management accountant to manage the transition of the existing Royal Adelaide Hospital to the proposed new site. The hospital has a number of separate departments responsible for direct patient care, such as Accident and Emergency, Intensive Care, Neurology, and Cardiology, as well as a number of support departments such as Radiology and Patient Records. You are a little uncertain as to what your role will be in this new hospital, as consultants have been engaged to design the new management accounting systems. You thought that as a management accountant you would be responsible for developing the new systems!
Required:
1. Write a report to senior management explaining how you, as the management accountant, may contribute to the design and operation of the new management accounting systems for the new hospital.
2. Outline the types of management accounting information that you believe senior managers may require on a regular basis (say, weekly and monthly) to manage the operations of the new hospital. Consider both financial and non-financial information.
3. The new hospital plans to invest in the latest computer technology to run various aspects of the organisation, including the management information systems. Discuss the opportunities that this may present for the way in which you supply weekly and monthly reports to managers.
Question 2: Schedules of cost of goods manufactured and sold; income statement (10 Marks)
The following data refer to Flintoff Fashions for the cu
ent year:
Sales revenue                $570 000
Work in process inventory, 31 December    18 000
Work in process inventory, 1 January    24 000
Selling and administrative expenses        90 000
Income tax expense            54 000
Purchases of raw materials        108 000
Raw material inventory, 31 December    15 000
Raw material inventory, 1 January        24 000
Direct labour                120 000
Electricity: plant                24 000
Depreciation: plant and equipment        36 000
Finished goods inventory, 31 December    30 000
Finished goods inventory, 1 January    12 000
Indirect material                6 000
Indirect labour                9 000
Other manufacturing overhead        48 000
Required:
1    Prepare the schedule of cost of goods manufactured for Flintoff Fashions.
2    Prepare the schedule of cost of goods sold for Flintoff Fashions.
3    Prepare the income statement for Flintoff Fashions.
4    Construct an Excel® spreadsheet to solve all the preceding requirements. Include formulas in your spreadsheet wherever possible. Show how both cost schedules and the income statement will change if:
(a)    raw material purchases amounted to $110 400.
(b)    indirect labour was $9600.
Question 3: Job costing; department overhead cost allocation: tour operator (10 Marks)
Asian Adventure Holidays offers a series of holiday packages aimed at families, seniors and corporate groups. The financial controller, Jack Tallis, is preparing for the annual board meeting and is concerned about the loss that the business sustained in the past year. He has examined the profits for each of the three departments of the business—family, seniors and corporate—and it seems that the corporate department is the source of the problem.
Jack has asked you to assist him to look more closely at the three packages offered by the corporate department to see which holiday packages are yielding profits and which are not. The three packages are to Thailand, Malaysia and Indonesia. The sales and direct costs of each corporate package for last year are as follows:
    
    Bali Adventure
    Thailand Discovery
    Malaysian Orienteering
    Number of packages sold
    10
    20
    10
    Number of people per package
    5
    6
    8
    Revenue per person
    $18 000
    $12 000
    $14 000
    Direct cost per package:
    
    
    
    Tour leade
    $5 000
    $12 000
    $9 000
    Tour assistant
    2 000
    3 000
    6 000
    Air travel
    28 000
    30 000
    32 000
    Accommodation
    15 000
    26 000
    24 000
    Equipment hire
    4 000
    0
    9 000
    Meals
    18 000
    15 000
    8 000
To calculate the profitability of each package, a proportion of the overhead costs of running the corporate department needs to be allocated to the three packages. Jack has suggested that these costs could be allocated to each package in proportion to actual sales revenue. For last year these overhead costs were as follows:
    Salaries
    $200 000
    Phone
    2 000
    Depreciation on equipment
    5 000
    Utilities
    2 000
    Rent and property taxes
    9 000
    Other department costs
    12 000
    Total
    $230 000
Required:
1. Calculate the profit per package and the total profitability of each of the three corporate packages.
2. Compare the profitability of the three corporate packages.
3. Do you consider that the allocation of the corporate department overhead to packages using actual sales revenue is appropriate? Can you suggest a better method?
4. Suggest what actions the company could take in regard to the three corporate packages.
Question 4: Cost of goods manufactured; overapplied or underapplied overhead; journal entries (10 Marks)
Cool Cooking Tools Ltd, manufacturer of gourmet cooking utensils, uses job costing. Manufacturing overhead is applied to production at a predetermined overhead rate of 150 per cent of direct labour cost. Any overapplied or underapplied manufacturing overhead is closed to cost of goods sold at the end of each month. Additional information:
Page 163
Job SR22, consisting of ceramic spoon rests, was the only job in process on 31 January, with accumulated costs as follows:
Direct material            $4000
Direct labour             2000
Applied manufacturing overhead     3000
Total                $9000
Jobs BS67, TR29 and GT108 were started during Fe
uary.
Direct materials requisitions during Fe
uary totalled $26 000.
Direct labour cost of $20 000 was incu
ed during Fe
uary.
Manufacturing overhead incu
ed in Fe
uary was $32 000.
The only job still in process on 28 Fe
uary was job number GT108, with costs of $2800 for direct material and $1800 for direct labour.
Required:
1    Calculate the cost of goods manufactured for Fe
uary.
2    Calculate the amount of overapplied or underapplied overhead to be closed to cost of goods sold on 28 Fe
uary.
Answered Same Day Apr 01, 2020 ACC203

Solution

Pulkit answered on Apr 04 2020
139 Votes
Question 1
Part 1-
As a management accountant, I have been trained with the necessary skills to provide some useful data and reports to the management for making successful control of business. While designing and implementing the new accounting system these reporting requirements can be instilled in the system which is being developed. I possess all the necessary qualities to administer the successful implementation of new accounting system in the business. It is not only about the reports that the system may provide but also the necessary conclusions which have to be drawn from this system.
Part 2-
Types of management accounting information needed by management of the company-
Forecasts: Forecasts are the predictions about the future numbers that the management may need. These numbers are needed by the management to estimate the future performance by the company. This information may be needed on the monthly, quarterly or annual basis depending on the size of company.
Budgets: Budgets are prepared annually in most of the cases. The budgets are the performance standards that the management sets and which have to be followed by the people in the company for performing business.
Variance Analysis: Variance is the deviation from the budgets. Variance analysis is required to be done on time to time basis for analyzing the performance by the employees of the company. This is done on an annual basis.
Part 3-
Using computers to generate the necessary reports would speed up the entire process of reporting. E
or free and timely reports can be generated by the system without manual interference. This provides the management with real time and co
ect information which is based on analytics to facilitate better decision making by the management.
Question 2
    1
    Schedule of cost of goods manufactured for Flintoff Fashions-
    
    Beginning raw materials inventory
     $ 24,000.00
    
     + Cost of raw materials purchased
     $ 108,000.00
    
     - Ending raw material inventory balance
     $ 15,000.00
    
     = Raw materials used
     $ 117,000.00
    
    
    
    
     Direct labor cost
     $ 120,000.00
    
     + Manufacturing overhead
     $ 48,000.00
    
     + Electricity: plant
     $ 24,000.00
    
     + Depreciation: plant and equipment
     $ 36,000.00
    
     + Indirect material
     $ 6,000.00
    
     + Indirect labou
     $ 9,000.00
    
     = Total manufacturing cost
     $ 360,000.00
    
    
    
    
     + Work in process inventory, 1 January
     $ ...
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