Hello, if you have any need, please feel free to consult us, this is my wechat: wx91due
ACCTG 221: Cost & Management Accounting
Assignment 2
Submission Instructions
This assignment must be submitted as follows:
(1) This assignment is due by May 21, 4 pm:
1. Complete a spreadsheet for this Assignment. Name the spreadsheet using your ID plus surname e.g. 123456789_Cui.
2. Submit your spreadsheet to Canvas before 4 pm May 21.
3. Use your spreadsheet to input your answers into the template using the Canvas link to Inspera before 4 pm May 21. Note that the Inspera link will be available 7 days prior to the due date and time, i.e., May 14, 4 pm.
4. Please note that you need to submit both your spreadsheet and complete the online template on Inspera before the due date.
(2) By submitting this assignment, you confirm your submission represents your individual effort and does not contain plagiarised material. Please ensure you are familiar with the rules on plagiarism and those stated in the UoA Guidelines: Conduct of Coursework at http://www.auckland.ac.nz/uoa/home/about/teaching-learning/honesty/tl-uni-regs- statutes-guidelines.
(3) It is your responsibility to ensure that no one copies your answers (see separate information on plagiarism and/or cheating).
These questions have been designed to be completed using Excel with the objective of improving your spreadsheet skills. We will be considering your workings in your spreadsheet when reviewing your marks.
(Note: you should be able to copy the tables in the Assignment and paste directly into Excel).
Question 1
Tiphaine produces customised outdoor furniture, such as chairs and tables. In March 2024, the assembling department used 22 kilograms of direct material and 19 hours of direct labour in a number of jobs producing customised furniture. The price per kilogram of direct material is $ 21, and the price per hour of direct labour is $ 24. The planned production volume for 2024 is 15, 000 units.
The managerial team are trying to decide which is the better driver to allocate monthly overhead costs: i) direct materials quantities and ii) direct labour hours. The regression results are below:
|
SUMMARY OUTPUT |
|
|
|
|
|
|
|
Regression Statistics |
|
|
|
Adjusted R Square |
0.8 |
|
|
F value and p-value |
8 |
0.00936 |
|
|
|
|
|
|
Coefficients |
P-value |
|
Intercept |
219, 000 |
0.08 |
|
Direct Materials |
14.76 |
0.048 |
|
SUMMARY OUTPUT |
|
|
|
|
|
|
|
Regression Statistics |
|
|
|
Adjusted R Square |
0.72 |
|
|
F value and p-value |
6.8 |
0.0104 |
|
|
|
|
|
|
Coefficients |
P-value |
|
Intercept |
240, 900 |
0.1 |
|
Direct Labour |
19.188 |
0.08 |
(1) Discuss which will be the better driver according to the regression result. (3 marks)
(2) What is the overhead recovery rate? (3 marks)
(3) Calculate the total cost per unit (round results to 2 decimal places). (15 marks)
|
|
Qty |
Price per quantity unit |
Unit Cost |
|
Direct Materials |
|
|
|
|
Direct Labour |
|
|
|
|
sum of total direct cost |
|
|
|
|
Variable overhead |
|
|
|
|
Total variable cost |
|
|
|
|
Fixed cost |
|
|
|
|
Total cost per unit |
|
|
|
(4) What is the cost of the monthly output? (3 marks)
(Question 1 Total Marks – 24 marks)
Question 2
In Johnson’s furniture company specialises in producing sofas. The Cutting and Assembling Department transfers its output to the Fabric
Application Department. Conversion costs occur evenly during the process, but materials are only added at the beginning. The opening WIP for the Fabric Application Department is 169 units that had been transferred in at a cost of $10,415 and were 32% completed, with conversion costs of $76,150 and material costs of $27,249. 1569 units were transferred in from the Cutting and Assembling Department with the transfer in cost of $ 109,830.00. During March 2024, 866 units were completed and transferred out to finished goods. The units remaining in ending WIP were 57% completed. Costs for the Fabric Application Department during the period were $266,730.00 for materials and $627,600.00 for conversion costs. Prepare a process cost report for the Fabric Application Department for March 2024.
|
Transferred in during period
Units Accounted for: Completed and transferred out Ending Work in process % of Ending WIP completed |
|
|
Costs to Account for: |
|
|
Work in process at beginning Costs added during period |
|
|
Costs Accounted for: Completed and transferred out Ending work in process |
|
|
|
|
(Question 2 Total Marks – 47 marks)