ACC103 Assignment January 2019 Intake
ACC103 Assignment January 2019 Intake
ACC103 Assignment January 2019 Intake
ACC103
Management Accounting 1
Assignment
Date of Release:
Beginning of Week 7
[26 March 2018]
ASSESSMENT DETAILS
Due Date: Week 12 (10 May 2019)
Value: 15% of total assessment for this subject
GENERAL INSTRUCTIONS :
1. This is a group based assignment. Each group should consist of [to be finalised
by lecturer with discussion with convenor]. Individual submission of this
assignment is NOT allowed and will be severely penalised.
2. Print out, fill in and submit the attached form on the following page together with
your assignment.
4. Please take note that copying the work of others, allowing others to copy your
work, and / or attempting to do any of the above mentioned will result in
automatic failure of your assignment. NO EXCUSES FOR ACTS OF
PLAGIARISM WILL BE ENTERTAINED. You may of course consult
textbooks, journals, or any publications for reference purposes. All sources or
materials used should be clearly quoted / referenced.
5. Before submitting your assignment you should make a copy and submit the
original for assessment. Late submissions will not be entertained unless there is
(are) some legitimate mitigating factor(s).
TURN-IT-IN INFORMATION
Student must attach the Turn-it-in Report to their assignments when submitting the
same.
Class ID : 19961714
Note : Only submit the essay part in Q2 (d) of the assignment for the Turnitin.
Website: https://www.turnitin.com
FILL IN AND ATTACH THIS FORM TOGETHER WITH YOUR
ASSIGNMENT
Member 1 :
Member’s Name & ID Work Done Signature
Member 2 :
Member’s Name & ID Work Done Signature
Member 3 :
Member’s Name & ID Work Done Signature
Member 4 :
Member’s Name & ID Work Done Signature
Member 5 :
Member’s Name & ID Work Done Signature
Member 6 :
Member’s Name & ID Work Done Signature
Question 1 (30 marks)
Oil & Gas Industry produces 2 joint products. Both products require additional
processing beyond the split-off point. There were no opening inventories at 1 April
2019. The following information relates to the month of April 2019 :
DEEZEL BEETUMEN
Production (litres) 600,000 400,000
Sales (litres) 580,000 350,000
Closing inventories (litres) 20,000 50,000
Selling price per pound
Additional processing costs (total) $400,000 $200,000
Total joint processing cost $3,000,000
The closing inventories are finished goods that are ready for sale.
Required :
(a) Determine the cost of the ending inventories of each of the products as at 30 April
2019 using the relative sales value method.
(8 Marks)
(b) Determine the cost of the ending inventories of each of the products as at at 30
April 2019 using the net realisable value method.
(8 marks)
(c) Determine the cost of the ending inventories of each of the products as at at 30
April 2019 using the constant gross margin method.
(8 marks)
(d) “DEEZEL” could be processed further into “RON99.9” for an additional cost of
$170.00 per pounds. “RON99.9” would sell for $750.00 per unit. Should the
company produce “RON99.9”? Show the necessary computation to justify your
decision.
(6 marks)
QUESTION 2 (35 marks)
Fraser & Hill. is a factory that produces Air-Cond coolant, COOLER and it starts its
process in the Moulding Department. Upon completion of processes in Moulding
Department, the product is transferred to Filling Department in order to complete its
processes.
In the Filling Department, the conversion costs are incurred uniformly throughout the
process. Materials are added uniformly throughout the process.. Overhead is allocated
on the basis of 100% of the direct labour cost.
Work in process, 1 May 2019 (20,000 units, 70% complete) cost of which includes:
Transfer In – Moulding Department $ 500,000
Direct Materials – Filling Department $ 1,500,000
Direct Labour - – Filling Department $ 800,000
Overhead – Filling Department $ ?
During the month of May 2019; 100,000 units were completed and transferred to
finished goods inventory.
At the end of May 2019, 40,000 units were still in process in Filling department.
These were expected to be 60% complete of for material and 50% for conversion.
Required :
(a) Prepare the Filling Department production cost report for the month of May 2019
using (round up to 2 decimal place) :
i. Weighted Average method
ii. FIFO method
(b) Assume that the conversion costs of Filling Department in the current month
decrease by 20%. What is the new conversion cost per equivalent unit and costs of
units completed and transferred out using
i. Weighted Average and
ii. FIFO method?
TURBO SILENCER
Production (units) 15,000 10,000
Raw material usage in total in ($) 36,000 43,200
Direct labour hours in total 15,000 10,000
Machine hours in total 8,000 7,000
Number of production runs per annum 16 12
Number of purchase orders per annum 24 28
Number of deliveries to retailers per annum 48 30
Direct labour cost was $10.00 per hour. The annual overhead costs were as follows:
Overhead $ Cost driver
Machine set up costs 30,000 Machine hours
Machine running 70,000 Number of production runs
costs
Procurement costs 50,000 Number of purchase order
Delivery costs 50,000 Number of deliveries
Total 200,000