Management Accounting for Costs and Control - Assignment
Added on 2021-06-16
14 Pages2536 Words43 Views
Running head: MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLManagement accounting for costs and controlSubject codeStudent name and ID numberAssignment task numberAuthor note
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLTable of ContentsQuestion 1..................................................................................................................................2Question 2..................................................................................................................................4Question 3..................................................................................................................................6Question 4..................................................................................................................................7Question 5................................................................................................................................10Reference..................................................................................................................................12Name Student IDPage 1
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLQuestion 1A.Job costingRaw Material AccountParticularAmountParticularAmountOpening balance $ 28,698.00 Work-in-progress $ 3,620.00 Purchase of Raw material $ 4,922.00 Closing Stock of Raw material $ 30,000.00 Total $ 33,620.00 Total $ 33,620.00 Work-in-Process AccountParticularAmountParticularAmountOpening balance $ 9,700.00 Cost of goods manufactured $ 61,120.00 Raw material $ 3,620.00 Direct Labour $ 29,600.00 Manufacturing OH $ 29,600.00 Closing balance $ 11,400.00 Total $ 72,520.00 Total $ 72,520.00 Accounts payableParticularAmountParticularAmountBank account $ 8,700.00 Opening balance $ 5,678.00 Closing balance $ 1,900.00 Raw Material purchased $ 4,922.00 Total $ 10,600.00 Total $ 10,600.00 Finished GoodsParticularAmountParticularAmountOpening balance $ 12,780.00 Cost of goods sold $ 55,000.00 Cost of goods manufactured $ 61,120.00 closing balance $ 18,900.00 Total $ 73,900.00 Total $ 73,900.00 Cost of goods soldParticularAmountParticularAmountFinished Goods $ 55,000.00 Cost of sales $ 55,000.00 Name Student IDPage 2
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLTotal $ 55,000.00 Total $ 55,000.00 Calculation of Closing WIPParticularsAmountMaterial $ 9,000.00 labour $ 2,400.00 Closing WIP $ 11,400.00 calculation of Labour hour rateParticularsAmountLabour amount $ 2,400.00 Labour hours300Labour hour Rate8.00Calculation of Overhead absorption rateParticularsAmountOverhead (Budgeted) $ 24,000.00Budgeted Labour hours3000Overhead Absorption rate $ 8.00B.Management accounting and historyThe Roman Coliseum building was started building between 73 and 75 AD andinaugurated in AD 81. No one knows the exact cost of the building but it is assumed that theproject was labour intensive. Out of the total expenses only 1/3rd was spend for the materialand the significant amount that is 2/3rd of the expenses were spend for the labour expenses.For building the structure manual labour system was undertaken and engineers, builders,painters, artist were used for skilled works. Therefore, there was a huge mismanagement ofcost and if it is to be restructured as per the modern costing management system theloopholes will be taken into consideration. Further, for managing the cost and allocating theName Student IDPage 3
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