Management Accounting for Costs and Control

Running head: MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Management accounting for costs and control
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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................9
Question 3................................................................................................................................12
Question 4................................................................................................................................16
Question 5................................................................................................................................21
Reference..................................................................................................................................24
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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Question 1
A. Job costing
Raw Material Account
Particular Amount Particular Amount
Opening 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 Account
Particular Amount Particular Amount
Op 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 payable
Particular Amount Particular Amount
Bank account $ 8,700.00 Op balance $ 5,678.00
Closing balance $ 1,900.00 Raw Material purchased $ 4,922.00
Total $ 10,600.00 Total $ 10,600.00
Finished Goods
Particular Amount Particular Amount
Op 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 sold
Particular Amount Particular Amount
Finished Goods $ 55,000.00 Cost of sales $ 55,000.00
Name
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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Total $ 55,000.00 Total $ 55,000.00
Calculation of Closing WIP
Particulars Amount
Material $ 9,000.00
labour $ 2,400.00
Closing WIP $ 11,400.00
calculation of Labour hour rate
Particulars Amount
Labour amount $ 2,400.00
Labour hours 300
Labour hour Rate 8.00
Calculation of Overhead absorption rate
Particulars Amount
Overhead (Budgeted) $ 24,000.00
Budgeted Labour hours 3000
Overhead Absorption rate $ 8.00
Formula view
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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Name
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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Name
Student ID Page 5