Management Accounting: Cost Values, Breakeven Point Analysis, Non-Financial Performance Measures

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Students:
Name of the University:
Author’s Note:

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MANAGEMENT ACCOUNTING
Table of Contents
Computation of Different Cost Values............................................................................................2
Statement showing Cost of Goods Sold and Goods Manufactured.................................................4
Income Statement............................................................................................................................5
Breakeven Point Analysis................................................................................................................5
Relevance of Non-Financial Performance Measures......................................................................6
Reference.........................................................................................................................................7

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MANAGEMENT ACCOUNTING
Computation of Different Cost Values
Computation of Closing WIP Balance:
Particulars Amount
Budgeted Manufacturing Overhead A $1,000,000
Budgeted Direct Labor Hours B 200000
Manufacturing Overhead Rate per
direct labor hour C=A/B $5.00
Direct Labour Hours for WIP D 32400
Manufacturing Overhead for WIP E=CxD $162,000
Direct Labor Cost F $90,720
Cost of Direct Material G $140,000
Closing Balance of WIP H=E+F+G $392,720
Figure 1: (Computation of Closing WIP balance)
Source: (Created by Author)
Computation of Direct Labor Cost:
Particulars Amount
Direct Labour Hours for WIP A $90,720
Direct Labour Hours for WIP B 32400
Direct Labor Cost per hour C=A/B $2.80
Total Direct Labor Hours for May D 260000
Total Direct Labor Cost for May E=CxD $728,000
Figure 2: (Computation of Direct Labour Cost)
Source: (Created by Author)