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Project Report on Analysis of Financial Records : Turramurra Furniture company

   

Added on  2020-06-06

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Management AccountingProblem
Project Report on Analysis of Financial Records : Turramurra Furniture company_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Q1. Circumstances in which job costing can be used............................................................1Q2. Computation of WIP........................................................................................................1Q3: Calculation for cost of chair in the finish good inventory...............................................2Q4. Calculation of over and under applied overhead.............................................................2Q5. Two various treatments for over and under applied overhead balances..........................3Q6. Approaches those are use by company to adjust under application of overhead............3Q7. Use of ABC ....................................................................................................................4CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
Project Report on Analysis of Financial Records : Turramurra Furniture company_2

INTRODUCTIONManagement accounting is an essential aspect for every business organization to manageday to day operations. It is used to measure, analyse and make report on the basis of financialand non – financial information generated by an organisation. There are certain problems thoseare always present with the business operation (DRURY, 2013). The managers need to paycareful attention to determine accuracy or credibility of inside financial reporting. This projectreport is presenting analysis of financial records that are associated with the TurramurraFurniture company.Q1. Circumstances in which job costing can be usedJob costing system is known as one of the effective methodsused in accounting to recordthe costs of a production job rather than process. By the help of this particular system, a projectaccountant can be used to track costing of each job. Basically, the job order costing is effectivein product manufacture that are separate from each other.Purpose of using job costing consists of accumulation cost of production such as labour,material and other overheads that are related at that time. A secondary analysis can be done inorder to see if any extra costs incur so that it can be billed to a customer. It is helpful to identifyand track total cost of labour those are used in a particular job. This is mainly used inconstruction industry (Parker, 2012). For every business organization, they always plan toincrease profitability through using proper allocation of resources of company. Beside this, thereare large benefit of job order costing delivers can have unique advantages that is set in order toattain future growth and sustainability for the company.Q2. Computation of WIPTo calculate WIP is :[Opening inventory of goods in process+ R. M consumed during the period+ directlabour during the period+ factory cost overhead for period) - closing stock][$1,591,000+43000+5, 91,100+87000)-31800= $23, 08, 9200 1
Project Report on Analysis of Financial Records : Turramurra Furniture company_3

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