ACCT204 Assessment Task 2


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ACCT204 Assessment Task 2.pdf Semester 1 2016 ACCT204 Managerial Accounting A Assessment task 2 – Group Assignment 25%. The group will consist of 4 students. Groups less than 4 students will need to be approved by the lecturer/tutor. The main purpose of this assignment is to assess the student’s ability of conducting an extensive case study covering several of the topics in this unit, team working and communication skills. Due date: Week 9 (6 May 2016, 17:00). How to submit: A copy of the assignment must be uploaded onto LEO through Turnitin system with the file name as ACCT204_groupNumber.docx. The similarity index report from the Turnitin is considered for marking purpose. Assignment Question: The following budgeted information relates to ABC Ltd for the forthcoming period: Product X Product Y Product Z Sales and production (units) 50,000 units 40,000 units 30,000 units Selling price (per unit) $45 $95 $73 Prime cost (per unit) $32 $84 $65 Machine department (machine hours per unit) Assembly department (direct labour hours per unit) Hours 2 Hours 5 Hours 4 7 3 2 Overheads allocated and apportioned to production departments (including service cost centre costs) were to be recovered in product costs as follows: 1. Machine department at $3.50 per machine hour, 2. Assembly department at $1.20 per direct labour hour. The management ascertains that the above overheads could be re-analysed into ‘cost pools’ as follows: Cost pool Machining services Assembly services Set-up costs Order processing Purchasing Total Cost driver $357,000 $318,000 $30,000 $156,000 $84,000 $945,000 Machine hours Direct labour hours Set-ups Customer orders Supplier orders Quantity period 420,000 530,000 530 32,000 11,200 for the The management has also provided you with the following estimates for the period: 1 Number of set-ups Customer orders Suppliers’ orders Product X 120 8,000 3,000 Product Y 200 8,000 4,000 Product Z 210 16,000 4,200 Requirements: You are to provide a report of not more than 1,500 words (on written part only excluding numerical information) that includes the income statements using both conventional absorption costing and activity-based costing and comment on why certain costing method is considered to present a fairer valuation of the product cost per unit. Notes on submission Students must submit the group assignment in Word document via Turnitin in LEO before due date. Each group assignment must be submitted by only one of the members of the group with the file name as “ACCT204_groupNumber.docx”.The submitted softcopy of the group assignment must have all the names in the group in the header or footer. The assignment in the form of hardcopy or email attachment will not be marked. The standard cover sheet must be signed by all group members stating that the work is original must be submitted to tutor separately in tutorial of week 10. All assignments must be typed in Times New Roman or Arial font, size 12, 1.5 to 2.0 spacing, justified (align to both left and right). 2 GRADING CRITERIA Bases of assessment Introduction paragraph(s) Research – Selection of relevant materials and use of literature to support the results Expression of your viewpoint (not a catalogue of quotes/ others’ ideas) Expression – clarity, style (formal and academic), coherence in writing, grammar, punctuation, spellings and sentence structure. Conclusion paragraph(s) The group has calculated correctly the product cost per unit. The group has provided the appropriate profit statements using conventional and activity-based costing The group has discussed the information revealed from the profit statements and able to relate it to company’s financial performances. The group has provided valid reasons for recommending an overhead allocation method Referencing procedure (within the text and at the end of text) Overall p

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