attachedCOURSE(S) & CODE(S): School: Business, Innovation and Entrepreneurship Department:...

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attachedCOURSE(S) & CODE(S): School: Business, Innovation and Entrepreneurship   Department: Business, Management and Finance       Preston Campus  77-91 St Georges Road  Preston, Victoria 3072  AUSTRALIA  NMIT CRICOS Code: 00724G Major Assignment     YEAR: 2018  SEMESTER: 2  COURSE(S): Bachelor of Accounting HEBSBACC  Associate Degree of Accounting HEBSACC11  Bachelor of Business HEBSBUS  Associate Degree of Business HEBSBUSAD SUBJECT: Management Accounting 1 BAC212/MPA703  CONTRIBUTION TO  OVERALL ASSESSMENT:  This assignment is worth 25% of the overall assessment.   DUE DATE: This assignment is due in on  26/09/2018   PARTICIPATION AND  SUBMISSION  REQUIREMENTS:  This is an individual assignment. The assignment must be a typed self-contained report and  professionally presented.  You will be required to submit your assignments online via this Moodle site.  Click on the  assignment activity for details of your assessment including instructions, due dates, and where to  find additional resources.   To submit your assignment file(s), select the corresponding activity and then click the 'add  submission' button.  Upload your file(s) and then accept the assignment submission statement to  submit your assignment for grading.    Important:  The assignment will only be considered as submitted when you accept the  assignment submission statement and your grading status changes to submitted for grading.  PLAGIARISM AND OTHER  COMPLIANCE ISSUES: This report must comply with Melbourne Polytechnic policies and academic conventions for  report writing, plagiarism and referencing. Your teacher will discuss these policies with you and  further information is available on the Melbourne Polytechnic Student Intranet. ASSESSOR(S): James Lau      Page 2 of 3 pages  This document is subject to change Student Name:   Student I.D.:   Year /  Semester:    Course:   Subject Name:   Lecturer: Assessor’s Use Only  Date submitted:   Date marked:   Contribution to final  mark:    Mark achieved:         Page 3 of 3 pages  This document is subject to change Assignment Question    Australia is a major manufacturer in dairy products.   To ensure the long-term health of this very important industry, dairy producers need to  understand the costs of the milk they produce. (1)   Do you think Australian dairy producers use job costing, process costing or a combination of  these two product costing systems in producing milk? (10 marks) (2)   Based on your answer to Question 1, consider each step in the production of a BATCH (say a  thousand 2-litre bottles) of milk. Create a product cost outline for these processes using your  own figures. (5 marks) (3)   Based on your answer to Question 1, what factors outside of production costs would   you suggest in order to improve profitability of the industry? (10 marks)

Aarti J · Accepted Answer

Process Costing – Dairy Industry
Course Name
Course Date
Student’s Name
PROCESS COSTING _ DAIRY INDUSTRY		5
Process Costing – Dairy Industry
Introduction
Australia is a major manufacturer in dairy products. To ensure the long-term health of this very important industry, dairy producers need to understand the costs of the milk they produce.
(1) Do you think Australian dairy producers use job costing, process costing or a combination of these two product costing systems in producing milk? (10 marks)
Costing analysis is one of the most important things which helps in analysing the proper cost of a product or a process. There are two major kinds of costing process which are used by the companies to analyse the cost of a product. The two major kinds of costing system includes process costing and Job costing.
Process costing:
Process costing is a method of costing system which is usually used by the homogeneous products or the products which are similar. The process costing is used by the products which needs continuous processing and is also produced in a large quantity. Under the process costing, the costs of production of a product is accumulated and distributed in the department. The company has to prepare a production sheet for the process of production of a particular product. Example of the products which uses process costing for production are oil, chemicals, milk, paper, clothes, and paper. 
Job costing:
Job costing is a method of costing which is done and is used by the heterogeneous products. Heterogeneous products are the products which are different and are usually produced in small quantities. This is usually job based and the costs of the products are accumulated with the help of the jobs that the product undergo. For the products that are produced using the job costing, the costs for the products are record in the job cost record. Example: Legal services, furniture, designer clothes etc.
Dairy Industry:
Considering the case of the dairy industry we can see that the dairy industry uses process costing to analyse the cost of the product. Under process costing, the company traces and accumulated the direct costs that are used in the production and then the indirect costs that are incurred by the company are allocated through the process costing. The production of the milk usually take place in a batch and the costs are allocated to the batches and the units of product.

COURSE(S) & CODE(S): School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Preston Campus 77-91 St Georges Road Preston, Victoria 3072 AUSTRALIA NMIT CRICOS...

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