QUESTION 1 Panopticism (4 marks)
See your text chapter 1, page 4. Describe Panopticism. How may it be relevant to management accounting? Give examples (about 200 words). Use images to enhance your answer.
QUESTION 2 Control (4 marks)
List and explain three functions of management accounting. Refer to the text chapter 1. Give examples (about 150 words).
QUESTION 3 Checklists (4 Marks)
Explain how the Van Halen rock band used checklists as a control device. See chapter 1 of your text. Use Internet resources to enhance your answer (about 200 words).
QUESTION 4 Manufacturing statement and income statement (18 marks)
Spreadsheet. See the Spreadsheet Advice PDF in Interact2 Resources and the examples in your textbook.
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spreadsheeting skills. Having spreadsheet skills will enhance your future employment prospects.
Check the assignment requirements below paying particular attention to the spreadsheet requirements. Ensure you have separate data and report areas with the latter showing only formulas. Use IF functions to allow for the possibility of either a net profit or a net loss. Show row and column headings and paste both a normal view and a formula view.
The question below has been
adapted
from your text P1-21.
QUESTION 5 Labour cost concepts (8 marks)
See chapter 2 of your text.
A. "If a perpetual inventory system is used for recording movements of raw materials there is no need to conduct a physical stocktake." Do you agree? Why?
B. Should overtime payments be treated as direct labour, or as overhead?
Explain.
QUESTION 6 Understanding the entries in the Materials Control account (6 marks)
See chapter 2 of your text.
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spreadsheeting skills. Having spreadsheet skills will enhance your future employment prospects.
Spreadsheet this problem
The Materials Control account balances were $60 000 on 1 April and $50 000 on 30 April. Raw materials purchased during April were $80 000. Direct materials issued to production were $60 000.
Required:
Show the Materials Control T-account in the ledger for April and a general journal entry to record the cost of indirect materials consumed during April.
QUESTION 7 Understanding the entries in the Accrued Payroll account (8 marks)
See chapter 2 of your text.
Create a manual, handwritten solution. Scan or use your phone to copy and paste an image of your handwritten solution in your word file. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which method you chose. We ask for a handwritten solution because this is the method you will use in the final exam. In the meantime, we also want you to acquire spread sheeting skills. Having spreadsheet skills will enhance your future employment prospects.
And spreadsheet this problem.
Salaries and wages payable to factory employees were $18 000 on 1 July. July’s factory salaries and wages expenses were $50 000 direct labour and $22 000 indirect labour. Salaries and wages paid during July were $70 000.
Required:
Show the T-account for Accrued Payroll for July. What was the balance in the account at the end of July?
QUESTION 8 Payroll entries (8 marks)
See chapter 2 of your text.
Spreadsheet not required.
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:
Required:
(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 the 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 (10 marks)
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC). See your text chapter 3.
Prepare a business report comparing the traditional costing system with ABC and evaluate arguments for and against ABC.
Use the Internet as a resource
and
academic journal articles (about 500 words excluding references).
Use the Internet for advice of business report structures.
For example,
www.business.unsw.edu.au/Students-Site/Documents/Writingareport.pdf
QUESTION 10 Service department cost allocation (20 marks)
Review the examples in your textbook.
Required:
1. Create a manual, handwritten solution. Scan or use your phone to copy and paste an image in your assignment. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which app you chose.
Use the algebraic method for the reciprocal services method.
2. Solve with a spreadsheet. Also show the Matrix algebra solution.
Include in your solutions the T accounts for Overhead as shown on page 93 of your text.