FNSACC507 | Provide Management Accounting Information | Task Report

Running head: PROVIDE MANAGEMENT ACCOUNTING INFORMATION
FNSACC507 Provide Management Accounting Information
Name of the Student:
Name of the University:
Authors Note:

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Table of Contents
Task 1:........................................................................................................................................2
A. Preparing a store ledger card for the month of September:...................................................2
B. Preparing a store ledger card for the month of August:........................................................3
Task 2:........................................................................................................................................4
a. Calculating a plant-wide application rate:..............................................................................4
b. Calculating application rates:.................................................................................................4
c. Cost of order 345 if a plant-wide application rate:.................................................................4
d. Cost of this order if application rates:....................................................................................4
e. Commenting on the adequacy of the quoted price:................................................................5
Task 3:........................................................................................................................................5
1. Preparing general journal entries:..........................................................................................5
2. Preparing ledger accounts:.....................................................................................................6
Task 4:........................................................................................................................................7
a. Expected profit if the business sold 2500 units:.....................................................................7
b. Expected break-even point in units:.......................................................................................8
c. Sales needed to achieve a profit of $46 500:..........................................................................8
d. Determining the profit, where units increase by 15%:...........................................................8
e. Determining the profit, where unit price increase by 15% and units decline by 10%:..........9
Task 5:........................................................................................................................................9
1. Preparing a manufacturing statement for the year ended 30 June 2017:...............................9
2. Preparing a trading statement for the year ended 30 June 2017:.........................................11
Bibliography:............................................................................................................................12

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Task 1:
A. Preparing a store ledger card for the month of September:
FIFO
Receiving Issuing Balance
Dat
e
Quant
ity
Unit
cost
Total
cost
Quant
ity
Unit
cost
Total
cost
Quant
ity
Unit
cost
Total
cost
1-
Sep 75 2.5 187.5
140 2.75 385
215 572.5
7-
Sep 75 2.5 187.5 135 2.75 371.25
5 2.75 13.75
11-
Sep 100 2.75 275 235 2.75 646.25
14-
Sep 125 2.9 362.5 235 2.75 646.25
125 2.9 362.5
360
1008.7
5
17-
Sep 235 2.75 646.25 60 2.9 174
65 2.9 188.5
19-
Sep 65 2.9 188.5 10 2.75 27.5
10 2.75 27.5 125 2.9 362.5
135 390
21-
Sep 100 3.1 310 10 2.75 27.5
125 2.9 362.5
100 3.1 310
235 700
24-
Sep 10 2.75 27.5 10 2.9 29

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
115 2.9 333.5 100 3.1 310
110 339
29-
Sep 25 3.1 77.5 10 2.9 29
75 3.1 232.5
85 261.5
B. Preparing a store ledger card for the month of August:
Weighted Average
Receiving Issuing Balance
Date
Quant
ity
Unit
cost
Total
cost
Quant
ity
Unit
cost
Total
cost
Quant
ity
Unit
cost
Total
cost
1-
Aug 180 40.00
7,200.0
0
5-
Aug 50 41.5 2075 180 40.00
7,200.0
0
50 41.50
2,075.0
0
230 40.33
9,275.0
0
12-
Aug 200 40.33
8,065.2
2 30 40.33
1,209.7
8
23-
Aug 25 40.33
1,008.1
5 55 40.33
2,217.9
3
31-
Aug 150 42.25
6,337.5
0 55 40.33
2,217.9
3
150 42.25
6,337.5
0
205 41.73
8,555.4
3

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Task 2:
a. Calculating a plant-wide application rate:
Particulars Amount
Overhead costs $70,000.00
Direct labour hours 43,750.00
Plant wide rate $1.60
b. Calculating application rates:
Machining Amount
Overhead costs $30,000.00
Machine hours 7,500.00
Machining department
rate 4.00
Finishing Amount
Overhead costs $40,000.00
Machine hours 40,000.00
Finishing department rate 1.00
c. Cost of order 345 if a plant-wide application rate:
Particulars Amount
Direct labour
cost
900.00
Plant wide rate 62.50%
Overhead applied 562.50
d. Cost of this order if application rates:
Particulars Amount
Machining department hours 180.00
Machining department rate $4.00

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Machine hours cost $720.00
Finishing department hours 50.00
Finishing department rate 1.00
Plant hours cost $50.00
Total using departmental rates $770.00
e. Commenting on the adequacy of the quoted price:
Under both circumstance the quoted price for Order number 345 is appropriate, which
can help in generating high level of income from operations.
Task 3:
1. Preparing general journal entries:
Particulars Amount Amount
Material control…..................Dr 1,78,200
GST Paid……………………Dr 19,800
Accounts payable 1,98,000
Labour Control….......................Dr 1,40,000
Gross payroll clearing 1,40,000
Work in progress…..............Dr 1,50,400
Material Control 1,50,400
Factory overhead Control.............Dr 35,100
Material Control 35,100
Work in progress…..............Dr 1,00,000
Labour control 1,00,000
Factory overhead Control.............Dr 40,000
Labour control 40,000
Factory overhead Control.............Dr 74,250
GST Paid………………………….Dr 8,250
Accounts payable 82,500

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Finished goods….........Dr 4,25,000
Work in Progress 4,25,000
Cost of goods sold…..............Dr 5,15,000
Finished goods 5,15,000
Accounts receivable…................Dr 13,75,000
GST Collected 1,37,500
Sales 12,37,500
2. Preparing ledger accounts:
Material control
Balance b/d 2,10,000 Work in process 1,50,400
Accounts payable 1,78,200 Factory overhead Control 35,100
Balance c/d 2,02,700
3,88,200 3,88,200
Work in process
Balance b/d 65,000 Finished goods 4,25,000
Material control 1,50,400
Labour control 1,00,000
Balance c/d 1,09,600
4,25,000 4,25,000
Finished goods
Balance b/d 4,15,000 Cost of goods sold 5,15,000
Work in process 4,25,000 balance c/d 3,25,000
8,40,000 8,40,000
Labour control
Gross payroll clearing 1,40,000 Factory overhead Control 40,000
Work in process 1,00,000
1,40,000 1,40,000
Gross payroll clearing
balance c/d 1,40,000 Labour control 1,40,000
1,40,000 1,40,000
Factory overhead Control
Work in process 35,100
Labour control 40,000 Balance c/d 1,49,350

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Accounts payable 74,250
1,49,350 1,49,350
Accounts payable
Material control 1,78,200 Balance c/d 2,24,400
Factory overhead Control 74,250 GST Paid 19,800
GST Paid 8,250
2,52,450 2,52,450
GST
GST Paid 19,800 GST Collected 1,37,500
GST Paid 8,250
Balance c/d 1,09,450
1,37,500 1,37,500
Accounts receivables
Sales 12,37,500 Balance c/d 13,75,000
GST Collected 1,37,500
13,75,000 13,75,000
Cost of goods sold
Finished goods 5,15,000 'Balance c/d 5,15,000
5,15,000 5,15,000
Task 4:
a. Expected profit if the business sold 2500 units:
Units 2500
Particulars Value
Revenue 1,50,000.00
Direct materials 15,000.00
Direct labour 18,750.00
Factory overhead 15,000.00

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Sales and administration 7,500.00
Variable cost 56,250.00
Contribution 93,750.00
Factory overhead 18,000.00
Sales and administration 48,000.00
Fixed cost 66,000.00
Profit 27,750.00
b. Expected break-even point in units:
Particulars Value
Revenue 60.00
Direct materials 6.00
Direct labour 7.50
Factory overhead 6.00
Sales and administration 3.00
Contribution 37.50
Fixed cost 66,000.00
Break-even point in units 1,760
c. Sales needed to achieve a profit of $46 500:
Particulars Value
Fixed cost 66,000.00
Target profit 46,500.00
Contribution margin ratio 62.50%
Sale revenue 1,80,000.00
d. Determining the profit, where units increase by 15%:
Units 2875
Particulars Value
Revenue 1,72,500.00

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Direct materials 17,250.00
Direct materials 21,562.50
Factory overhead 17,250.00
Sales and administration 8,625.00
Variable cost 64,687.50
Contribution 1,07,812.50
Factory overhead 18,000.00
Sales and administration 48,000.00
Fixed cost 66,000.00
Profit 41,812.50
e. Determining the profit, where unit price increase by 15% and units decline by 10%:
Units 2250
Particulars Value
Revenue 1,55,250.00
Direct materials 13,500.00
Direct materials 16,875.00
Factory overhead 13,500.00
Sales and administration 6,750.00
Variable cost 50,625.00
Contribution 1,04,625.00
Factory overhead 18,000.00
Sales and administration 48,000.00
Fixed cost 66,000.00
Profit 38,625.00

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Task 5:
1. Preparing a manufacturing statement for the year ended 30 June 2017:
Manufacturing statement for the year ended 30 June 2017
Particulars Value Value
Direct Materials
Open inning balance 11,700.00
Purchases of direct material 58,780.00
Purchases returns of direct material (1,065.00)
Freight inwards on direct material 1,790.00
Ending balance (10,230.00)
Total direct material used 60,975.00
Direct Labour
Accrued direct wages -1,500
Direct wages paid 38,675
Direct wages accrued 3,150
Total direct labour 40,325
Factory overhead
Indirect material inventory 2,025
Purchases of indirect material 5,410
Indirect material on hand (1,140) 6,295
Accrued indirect wages (750)
Indirect wages paid 5,050
Indirect wages accrued 700 5,000
Factory rates paid 3,100
Prepaid factory rates (900)
Prepaid factory rates 800 3,000

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Factory power 2,960
Other factory costs 8,880
Factory rent 19,000
Depreciation on factory buildings 4,475
Depreciation on factory equipment 3,890
Total factory overhead 53,500
Total manufacturing cost 1,54,800
Beginning work in progress 4,000
Total cost of work in process
inventory 1,58,800
Ending work in progress inventory (3,500)
Total cost of goods sold 1,55,300
2. Preparing a trading statement for the year ended 30 June 2017:
Trading statement for the year ended 30 June 2017
Particulars Value Value
Sales 2,73,500
Revenue 2,73,500
Opening finished goods 25,800
Purchases of finished goods 6,550
Total cost of goods sold 1,55,300
Freight inwards on finished
goods 250
Closing finished goods (27,900)
Purchases 1,60,000
Gross profit 1,13,500

PROVIDE MANAGEMENT ACCOUNTING INFORMATION

PROVIDE MANAGEMENT ACCOUNTING INFORMATION
Bibliography:
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for
decision making. John Wiley & Sons.
Lavia López, O. and Hiebl, M.R., 2014. Management accounting in small and medium-sized
enterprises: current knowledge and avenues for further research. Journal of Management
Accounting Research, 27(1), pp.81-119.
Quattrone, P., 2016. Management accounting goes digital: Will the move make it
wiser?. Management Accounting Research, 31, pp.118-122.
Spraakman, G., O'Grady, W., Askarany, D. and Akroyd, C., 2015. Employers’ perceptions of
information technology competency requirements for management accounting
graduates. Accounting Education, 24(5), pp.403-422.
Trigo, A., Belfo, F. and Estébanez, R.P., 2014. Accounting information systems: The
challenge of the real-time reporting. Procedia Technology, 16, pp.118-127.