Purpose of management accounting reports

Assignment Help Managerial Accounting

Reference no: EM131013362

QUESTION 1 Purpose of management accounting reports

What is the purpose of management accounting reports? Give three examples.

QUESTION 2 factors that drive management accounting work

Describe the three factors that drive management accounting work.

QUESTION 3 Cost concepts

Which of the following is incorrect?
A Direct materials + direct labour = prime cost
B Direct labour + manufacturing overhead = conversion cost
C Prime cost + conversion cost = cost of goods manufactured
D Cost of goods manufactured = direct labour + direct materials + manufacturing overhead
E Only one of the above is incorrect

Explain your answer.

QUESTION 4 Manufacturing statement and income statement

Spreadsheet. See the Spreadsheet Advice in Interact2 Resources and the examples in your textbook.

See the requirements within the spreadsheet template below.

Check the spreadsheet assignment requirements. Ensure you have separate data and report areas. The report area will show only formulas. Use IF functions to allow for the possibility of either a net income or a net loss.

Cost of Goods Manufactured Statement and Income Statement
Helen Reddy Corporation

For SpecMc Date	on millions SI		on minions Si'
Work in process. Jan 1, 20X1		10 Plant utilities	7¹
Direct materials, Dec 31, 20X1		4 Indirect manufacturing labour	23
Finished goods. Dec 31, 20X1		9 Depreciation - plant, building d equip	8'
Accounts payable, Dec 31, 20X1		16 Revenues	667
Accounts receivable. Jan 1, 20X1		32 Miscellaneous manufacturing overhead	11
Work in process, Dec 31, 20X1		6 Marketing. Distribution, Customer-Service Costs	88
Finished goods. Jan 1, 20X1		26 Direct materials purchased	64
Accounts receivable. Dec 31, 20X1		39 Direct manufacturing labour	75
Accounts payable, Jan 1, 20X1		24 Plant supplies used	6
Direct materials. Jan 1. 20X1		21 Property taxes on plant	3^.

Required: Cost of goods manufactured statement and income statement

QUESTION 5 Cost concepts

Should overtime payments be treated as direct labour, or as overhead? Why?

QUESTION 6 Understanding the entries in the Materials Control account.

The Materials Control account balances were $34 000 on 1 June and $28 000 on 30 June. Raw materials purchased during June cost $90 000. Direct materials issued to production during June were $40 000.

Required:

Reconstruct the Materials Control T-account and show the general journal entry to record the cost of raw materials issued as indirect materials during June.

QUESTION 7 Understanding the entries in the Accrued Payroll account

Salaries and wages payable to factory employees were $12,000 on 1 March and $34,000 on 31 March. Gross salaries and wages paid during March totalled $32,000. March's direct labour totalled $19,000.

Required:

T-account for Accrued Payroll and general journal entries for recording salaries and wages earned by, and paid to, factory employees during March.

QUESTION 8 Payroll entries

The Patel Company has a gross payroll of $8 000 per day. Withholdings for PAYG taxes are $2400 per day. There are no other deductions from employees' earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the week is paid on the following Friday.

Gross payroll consists of $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions:

(a) What is the total amount to be credited to Accrued Payroll in respect of September earnings?

(b) If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on September 30?

(c) Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month.

(i) Show the weekly journal entry.

(ii) Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of September.

QUESTION 9 Activity Based Costing

Your employer is contemplating changing the existing costing systems used in the business to adopt activity based costing (ABC).

Prepare a business report to critically evaluate arguments for and against ABC. Use the Internet as a resource (about 250 words excluding references). The following resource will help you prepare and format your report:

https://bit.ly/FoBAcademic-Writing-Skills

QUESTION 10 Service department cost allocation

Spreadsheet problem. Check the spreadsheet assignment requirements and review the examples in your textbook.

Service Department Cost Allocation

Percentage Consumption of Support Services
	S1	S2	P1	P2	Total
S1	0	30	40	30	100
S2	10	0	40	50	100

Overhead Costs Charged to Service and Production Centres

	S1	S2	P1	P2	Total
	12000	20000	22000	46000	100000

Using template 1 below, re-allocate the service centre costs to the production departments by

(a) the direct method

(b) the step method

(d) complete the T accounts shown in the second template for EACH method. Add this template to the first template such that all solutions are created automatically.

(e) Assume you are the manager with the task of choosing one only of these methods to implement. With reference to the outcomes of each method, outline the criteria relevant to your decision.

Reference no: EM131013362

Questions Cloud

Creating and testing a paperprototype : Creating and Testing a PaperPrototype- Prototyping is an important step as it allows you to decide on navigation, layout, menu options, application structure and much more, making quick decisions about your apps or site's requirements and ultimate..

Calculate the total delta-v requirement for this mission : On December 1, 2005, a spacecraft left a 180 km altitude circular orbit around the earth on a mission to Venus. It arrived at Venus 121 days later on April 1, 2006, entering a 300 km by 9000 km capture ellipse around the planet. Calculate the tota..

Calculate the change in apogee radius due to a change : An earth orbit has a perigee radius of 7000 km and a perigee velocity of 9 km/s. Calculate the change in apogee radius due to a change of 1 km in the perigee radius.

Calculate the propellant mass required to launch : Calculate the propellant mass required to launch a 2000-kg spacecraft from a 180 km circular earth orbit on a Hohmann transfer trajectory to the orbit of Saturn. Calculate the time required for the mission and compare it to that of Cassini. Assume..

Purpose of management accounting reports : What is the purpose of management accounting reports? Give three examples - Describe the three factors that drive management accounting work.

Use the chain rule to find the partial derivatives : Use the Chain rule to find the partial derivatives ∂z/∂s and ∂z/∂t ,if z = er cos θ, r = st, θ = √(s2+t2). Find the equations of the tangent plane and normal line to the surface x2 - 6 y2 + z2 - xy + 2 yz = 3 at the point P(2, -1,3).

What does section of the law cover or describe : What does section of the law cover or describe what the issue is? What does that section of the law actually do to health care from the perspective of the employer or employee

What role does party identification play : What are the long-term and short-term factors determining why people vote? Why? What role does party identification play? And does this vary in single-member districts and proportional representation systems

How does party identification tend to evolve from childhood : How does party identification tend to evolve from childhood through adulthood? Explain your answer

User Account

All Pages