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MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLS

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Added on  2019-12-18

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4 Question 6 Show the Materials Control account in the ledger for April and a general journal entry to record the cost materials purchased during April 5 Question 7 T-account for Accrued Payroll for March and general journal entries for recording salaries and wages earned by factory employees during March 5 Question 8 6 a) Calculate Smith's Gross pay for the week 6 b) Indicate the sum to be treated as indirect Labor6 Question 9 Prepare a business report outlining the traditional costing system and evaluate arguments for

MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLS

   Added on 2019-12-18

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MANAGEMENTACCOUNTING FORCOSTS ANDCONTROLS
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLS_1
Table of ContentsQuestion 1 Identify the three major cost elements in the cost of a product or service................4Question 2 Give three examples of products where detailed recording of costs is required andaveraging techniques used...........................................................................................................4Question 3 Define the status of monthly cost of renting a manufacturing plant.........................4Question 4 Use IF functions to allow for the possibility of either a net income or a net loss....4Question 5 Should overtime payments be treated as direct labor, or as overhead? Explain.......4Question 6 Show the Materials Control account in the ledger for April and a general journalentry to record the cost materials purchased during April...........................................................5Question 7 T-account for Accrued Payroll for March and general journal entries for recordingsalaries and wages earned by factory employees during March..................................................5Question 8 ...................................................................................................................................6a) Calculate Smith's Gross pay for the week...............................................................................6b) Indicate the sum to be treated as indirect Labor......................................................................6Question 9 Prepare a business report outlining the traditional costing system and evaluatearguments for and against ABC...................................................................................................6Question 10 Allocate service departments using different methods............................................7a) Direct method.........................................................................................................................7b)Step method..............................................................................................................................7
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLS_2
Question 1 Identify the three major cost elements in the cost of a product or serviceThere are three important elements of costs to be included in a particular product or services isgiven as below:Material- Direct material is that costs in which all kinds of raw materials used directly in themaking of a particular product.Labor- All the labors directly assigned in designing of a particular product or services will countas direct labor.Expenses- All the expenses directly incurred in the manufacturing of goofs or services aretermed as direct expenses of a product.Question 2 Give three examples of products where detailed recording of costs is required andaveraging techniques used.Detail recording of costsMarketing expensesSelling expensesAdministrative expensesAveraging techniquesCost of goods soldInventoryValue averagingQuestion 3 Define the status of monthly cost of renting a manufacturing plantMonthly cost of renting a manufacturing plant is required as prime cost as well as periodcost as rent is incurred in an entity for meeting its manufacturing operations. So, rent will becount as manufacturing overhead cost allocated to all the products.Question 4 Use IF functions to allow for the possibility of either a net income or a net lossIllustration 1: IF Function
MANAGEMENT ACCOUNTING FOR COSTS AND CONTROLS_3

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