Assessment item 1
Assessment item 1
Due date: 18-Apr-2017
Return date: 10-May-2017
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Alternative submission method
The purpose of Assessment item 1 is to establish the skills needed in the workplace for costing products and services using the appropriate processes and tools and apply analytical processes to construct accounting systems and models using workplace tools. Each question uses realistic data and the professional practices similar to that found in workplaces.
Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions. It assesses learning outcomes as listed in the assignment rationale below.
QUESTION 1 Management accounting and costs (4 marks)
Identify the three major cost elements in the cost of a product or service. Define each and give examples.
QUESTION 2 Costing (4 marks)
Give three examples of products where more detailed recording of costs is required and three examples of products where averaging techniques may be appropriate.
QUESTION 3 Cost concepts (4 marks)
The monthly cost of renting a manufacturing plant is
A a prime cost and an inventoriable cost.
B a prime cost and a period cost.
C a prime cost and a product cost.
D a conversion cost and a period cost
E a conversion cost and an inventoriable cost.?Explain your answer.
?QUESTION 4 Manufacturing statement and income statement (18 marks)
Spreadsheet. See the Spreadsheet Advice PDF in Interact2 Resources and the examples in your textbook.
See the requirements within the spreadsheet template below.
Check the assignment requirements in this subject outline paying particular attention to the spreadsheet requirements. Ensure you have separate data and report areas showing only formulas. Use IF functions to allow for the possibility of either a net income or a net loss. Show row and column headings and paste both a normal view and a formula view.
QUESTION 5 Cost concepts (8 marks)
Should overtime payments be treated as direct labour, or as overhead? Explain.
QUESTION 6 Understanding the entries in the Materials Control account (6 marks)?The Materials Control account balances were $40 000 on 1 April and $20 000 on 30 April. During April direct materials issued to production were $70 000 and indirect materials consumed were $30 000.
Show the Materials Control account in the ledger for April and a general journal entry to record the cost materials purchased during April.
QUESTION 7 Understanding the entries in the Accrued Payroll account (8 marks)?Salaries and wages payable to factory employees were $20 000 on 1 March and $8000 on 31 March. Gross salaries and wages paid during March totalled $50 000. March's direct labour totalled $28 000.
T-account for Accrued Payroll for March and general journal entries for recording salaries and wages earned by factory employees during March.
QUESTION 8 Payroll: direct and indirect labour (8 marks)?J. Smith worked for 48 hours during the pay week ending Friday April 24. His normal working week consists of 40 hours, of which 35 hours were spent on production while the remaining 5 hours were non-productive idle time. Smith worked 2 hours overtime at a premium of 50% on Monday April 20 because a customer required work finished by Tuesday April 21 even if overtime had to be worked to complete it. Smith worked a further 6 hours overtime on Wednesday April 22 on other production. It is the policy of the company to pay an overtime premium of 100% after the first 3 hours on any one day. Smith’s normal wage rate is $22 per hour.
(a) Calculate Smith’s gross pay for the week.
(b) Indicate the sum to be treated as indirect labour.
QUESTION 9 Activity Based Costing (10 marks)
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC). See your text page 81.
Prepare a business report outlining the traditional costing system and evaluate arguments for and against ABC. Use the Internet as a resource. The following resources will help you prepare and format your report:eportfolio.csu.edu.au/pebblepad/viewasset.aspx
Or see this resource. unilearning.uow.edu.au/report/4b.html
QUESTION 10 Direct, step and reciprocal methods of overhead allocation (20 marks)?Colin and Company has two production departments and two service departments. The budgeted costs of these departments are:
The services of S1 are allocated according to the number of employees in the other departments:
S2 has 20 employees, P1 30 employees and P2 30 employees.
The services of S2 are allocated 30% to S1, 20% to P1 and 50% to P2.
Allocate service department costs to the production departments using
(a) the direct method
(b) the step method
(c) the reciprocal services method.
A. Solve manually. Use the algebraic method for the reciprocal services method.
B. Then solve with a spreadsheet. Show the Matrix algebra solution. See examples in your text.
The presentation for this assignment is weighted at 10 marks.
This assignment assesses your achievement of learning outcomes including the application of cognitive skills in the design and operation of costing systems; the design and operation of performance management systems including manufacturing statements, job costing systems, ABC and service department cost allocation; the role of management accounting in organisational contexts and the implications for management accounting of different paradigms; the application of analytical and synthetical skills in report writing; quantitative techniques and computer software including using the Internet as a professional source; the creation and implementation of computerised decision models; and to critique how managers make decisions.
In particular, this assignment is designed to assess your application of knowledge, understanding and skills in certain topics including cost flows in management accounting, functions, terminology, manufacturing statements, spreadsheet construction, product costing, materials acquisition systems, labour payment systems, accounting for overhead, business report writing, activity based costing, (ABC) and the allocation of overhead including service department costs.
For spreadsheet questions formula views showing row and column headings are important.
Your assignments will be marked as a whole with recognition being given to application of knowledge, quality thinking and application of skills. For some questions, students have a chance to demonstrate some creativity, or provide their own examples or give evidence of wider reading or structure a computer spreadsheet model in an innovative manner. We also need to avoid the snowballing effects of cumulative errors - that is, an error early in a practical question which carries through. Thus a marking system is used with deductions for errors and omissions. Full marks are possible for well structured, complete, quality answers.
Any assignments with significant evidence of plagiarism may be referred to the university's academic misconduct processes and will receive a grade of zero. See www.csu.edu.au/faculty/business/studentresources/plagiarism
The marking criteria for your assignments will be based on the content of the subject as identified by the learning objectives as outlined above and at the beginning of each of the various topics as outlined in the Interact topics. Good spreadsheet answers will comply with the assignment requirements.
Example of marking criteria for an essay/business report.
Example criteria used in marking essays/discussion questions/case studies/business reports
While there is no particular format required for these answers, the following criteria are likely to be used. Note that business reports are more structured than essays.
Relevance of the answer - are the important issues raised in the question identified? Did the student answer the questions?
Critical capacity. Has reference material been carefully analysed or critically accepted?
Structure of the answer. Is the answer well-structured and the argument logically developed?
Writing style. Is the style concise and lucid or confused, making it difficult for the reader to get the point?
Scope of reading. Does the answer indicate a satisfactory coverage of literature relevant to the questions?
• be well planned with arguments flowing logically;
• use correct sentence structure, punctuation and spelling;
• present original ideas where appropriate;
• and present a justified conclusion and acknowledge all sources.
Normal distribution curves for grades are not utilised in this subject. Penalties will apply for late submission at 10% of the total mark available per day; it is important that submitted assignments are complete; omitted answers will result in mark deductions; refer to the University regulations contained in the CSU online handbook for matters pertaining to special consideration, misadventure and extenuating circumstances, academic misconduct, code of conduct for users of electronic facilities, assessment regulation, grading scale, progression and academic performance, grade point average, examination regulations and other matters pertaining to assessment. The regulations can be found at the University's web site: http://www.csu.edu.au
Marking Criteria Rubric Assignment 1
Rubrics are an authentic assessment tool. A rubric lists a set of criteria, which defines and describes the important components of the work being planned or evaluated. A rubric can be defined as an established rule, tradition, or custom. The accounting system itself can be regarded as a type of rubric. http://us.iearn.org/professional_development/multimedia/assess/rubric.html. This marking criteria rubric indicates how the assignments will be assessed in this subject
Criteria High Distinction Distinction Credit Pass
Criteria for expected learning outcomes to be achieved include critical evaluation of costing systems, demonstrating understanding and application of cost flows in management accounting, functions of cost flows in manufacturing, terminology, manufacturing statements, computer modelling, product costing, materials acquisition systems, labour payment systems, accounting for overhead, activity based costing, (ABC) and the allocation of overhead including service department costs.
Be the result of your original work, complete without any omissions and correct.
Evaluate all the issues raised in questions.
Provide examples where appropriate
Accurate answers complying with all spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete without any omissions, and be mostly correct.
Evaluate most of the issues raised in questions
Provide some examples where appropriate
Comply with the majority of spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete with few omissions, and be partially correct.
Evaluation of some of the issues raised in questions.
Provide examples where appropriate.
Comply with some of the spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete with some omissions, and be partially correct.
Evaluate some of the issues raised in questions
Provides 1-2 examples where appropriate
Comply with some spreadsheet requirements.
Academic writing skills. The discussion answers and business reports meet academic standards of syntax, vocabulary, spelling and punctuation and reflects an awareness of audience needs. Accurate use of syntax, spelling and punctuation; correctly refers to a variety of sources to support arguments, including the prescribed texts and a range of additional readings; reference list of the range of resources used, correctly formatted using APA style. Accurate use of syntax, spelling and punctuation; succinct and effective use of vocabulary; correctly refers to a range of sources to support arguments, including the prescribed text and a variety of further readings;
reference lists a range of relevant resources used, correctly formatted using APA style. Accurate use of syntax, vocabulary,
spelling and punctuation; correctly refers to more than the minimum requirement of sources to support arguments, including
prescribed texts and recommended readings;
reference list formatted in APA style, with few or no errors. Mostly accurate syntax, spelling and punctuation; correctly refers to minimum number of sources to support arguments, including prescribed texts; reference list used, formatted in APA style, with few errors.
? Please read this in conjunction with the assignment requirements below.
? Single spacing and small margins are welcome to save paper.
? For any business report style questions a report structure is expected.
? Provide references throughout your assignment including page references to texts, articles and URL’s of websites.
? CSU uses the APA referencing style. See eportfolio.csu.edu.au/pebblepad/viewasset.aspx or refer to the CSU library
? Post enquiries to the subject discussion forum to clarify any assignment format issues.
? Acknowledge ALL sources used.
? At the end of your assignment include a complete Bibliography (Reference List) of resources actually used including the Internet, textbook, Study Guide, Software help files and videos supporting this subject.