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Management Accounting Assignment - Turramurra Furniture

   

Added on  2020-05-28

14 Pages2050 Words33 Views
Running head: MANAGEMENT ACCOUNTINGManagement AccountingName of the Student: Name of the University: Author’s Note:
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1MANAGEMENT ACCOUNTINGTable of ContentsIntroduction................................................................................................................................2Body:..........................................................................................................................................3Suitable Circumstances for Job Order Costing System.........................................................3Introduction........................................................................................................................3Body:..................................................................................................................................3Work-in-Process Balance.......................................................................................................4Introduction........................................................................................................................4Work-in-Process Balance:..................................................................................................4Cost of Chairs in Finished Goods Inventory:.........................................................................5Introduction........................................................................................................................5Computation of Over or Under Applied Overhead................................................................6Introduction........................................................................................................................6Different Treatments for Adjusting Over Applied Overheads:..............................................7Introduction........................................................................................................................7Different Treatments for Adjusting Over Applied Overheads:..........................................7Approach for Adjusting Over Applied Material Cost............................................................8Activity Based Costing..........................................................................................................9Introduction........................................................................................................................9Activity Based Costing......................................................................................................9Conclusion................................................................................................................................11Reference List..........................................................................................................................12
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2MANAGEMENT ACCOUNTINGIntroduction The company that is under consideration in this paper is Turramurra Furniture, whichis a specialised organization for making use of the computer. There are numerous kinds offurniture that are manufactured under variant job numbers. This report is constructed toascertain the cost of every kind of the furniture and explains the method of cost assumptionunder the process of job order costing.
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3MANAGEMENT ACCOUNTINGBody: Suitable Circumstances for Job Order Costing System Introduction Job Order Costing System is a kind of costing method that is generally used by themanufacturing industries in order to keep track about the manufacturing process and thenumber of products that have been produced in a day or a batch. This part would thereforedetermine the appropriate situations that can be used for the purpose of Job Order CostingSystem Body: There are several scenarios within which the method of job order costing process canbe utilised by the firms and even individuals. The process of job order costing is generallyexploited by the organizations that have the capability of manufacturing various kinds of andnumber of products that are way different from each other. It is a kind of costing process thatis used extensively in the manufacturing process along with the industries that are related tothe service sector (Weygandt, Kimmel and Kieso 2015). The manufacturing units andorganizations that are exploiting the process of job costing usually attain the orders for theirtailored products and services. These orders that have been tailored by nature are called thejobs and the batches. When a company permits the orders and the jobs for different products,the allotment of the cost towards the product become a tough job. In this respect, the recordfor every expense for every distinct job is maintained due to the reason that each of the jobshave several products and services associated with it (Edmonds et al. 2016). The expense perunit of a distinct task is computed by dividing the total allocated cost to that job by the
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