HI5017 Managerial Accounting Assignment Help
Question 1: TikTok Coffee Tables
A: Total Manufacturing Cost for X10
|
Direct Materials Used in Manufacturing |
$22,800 |
|
Direct Labor Cost ($16 x 600 L.hours) |
$9,600 |
|
Manufacturing Overheads ($30 x 400 M.hours) |
$12,000 |
|
Total Man. Cost |
$44,400 |
B: Cost Per Coffee Table for X10
|
Total Manufacturing Cost (Job X10) |
$44,400 |
|
Number of Coffee Tables |
150 |
|
Cost Per Table for X10 ($44,400/150) |
$296/table |
C: Two Uses of Unit Cost Information for TikTok Management
The unit cost information is beneficial for TikTok Management because;
- It can help in determination of selling price after markup calculation
- It can help in determination of process improvement initiatives to be taken by company after analyzing the different cost heads.
Question 2: TikTok Aluminum Fibre Tripods
A: Activity Rates
The ABC overhead rate is calculated as = Estimated OH/Expected use of Cost Driver
B: Unit Cost of TRI-X
Cost Assigned = Cost Driver x ABC Overhead Rates from part A.
Hence Total Cost/Unit of TRI-X
C: Gross Profit
TRI-X should be continued because it is achieving gross profit of more than $600 under ABC costing system.
Question 3: Trackit
A: Cash Receipt Budget (July-Sep)
|
TRACK IT: Sales Budget |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Budgeted Sales (units |
1000 |
1500 |
2000 |
4500 |
A |
|
Sell Price |
140 |
140 |
140 |
|
B |
|
Budgets Sales ($) |
$140,000 |
$210,000 |
$280,000 |
$630,000 |
C = A x B |
|
Cash Receipt Budget |
July |
August |
September |
Total |
Note |
|
15% of Credit Sales in Same Month |
21,000 |
31,500 |
42,000 |
94,500 |
D = C x 15% |
|
25% of Credit Sales Received in Next Month |
– |
35,000 |
52,500 |
87,500 |
E = 25% of C of previous month |
|
40% of Credit Sales Received in Second Month |
– |
– |
56,000 |
56,000 |
F = 40% of previous to previous month |
|
Less: Sales Discount |
(840) |
(1,260) |
(1,680) |
(3,780) |
G = D x 4% |
|
Estimated Cash Receipts |
$20,160 |
$65,240 |
$148,820 |
$234,220 |
H |
B: Material Purchase Budget (July-Sep)
|
TRACK IT: Material Purchase Budget |
||||||
|
Month |
July |
August |
September |
Total |
October |
Notes |
|
Production Budget |
1,450 |
1,650 |
2,210 |
5,220 |
2,460 |
I |
|
Material Req. Per Unit |
1 |
1 |
1 |
|
1 |
J |
|
Material Usage Budget |
1,450 |
1,650 |
2,120 |
5,220 |
2,460 |
K = I x J |
|
Add: Closing |
330 |
424 |
492 |
492 |
|
L = 20% of K of next month |
|
Less: Opening |
– |
330 |
434 |
– |
|
M = 20% of K of Same Month (for opening its mentioned to be 0) |
|
Material Purchase Budget (Units) |
1,780 |
1,744 |
2,188 |
5,712 |
|
N |
|
Cost Per unit |
60 |
60 |
60 |
|
|
O |
|
Material Purchase Budget |
$106,800 |
$104,640 |
$131,280 |
$342,720 |
|
P = N x O |
|
TRACK IT: Payments to Materials Suppliers |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Material Purchase Budget |
106,800 |
104,640 |
131,280 |
342,720 |
Refer to P |
|
Full amount paid in next month |
|
106,800 |
104,640 |
211,440 |
Q = 100% of P of the previous month |
|
Cash Disbursement for Materials |
– |
106,800 |
104,640 |
211,440 |
See Q |
|
TRACK IT: Direct Labor Payment |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Production Budget |
1,450 |
1,650 |
2,120 |
5,220 |
See I |
|
Cost per Unit |
10 |
10 |
10 |
|
R |
|
Direct Labor Payment |
14,500 |
16,500 |
21,200 |
52,200 |
S = I x R |
|
TRACK IT: Factory VOH |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Variable |
|
|
|
|
|
|
Production Budget |
1,450 |
1,650 |
2,120 |
5,220 |
See I |
|
VOH/Unit |
20 |
20 |
20 |
|
T |
|
VOH |
29,000 |
33,000 |
42,400 |
104,400 |
U = I x T |
|
65% paid in same month |
18,850 |
21,450 |
27,560 |
67,860 |
V = U x 65% |
|
35% paid in next month |
– |
10,150 |
11,550 |
21,700 |
W = 35% of U of previous month |
|
Payment for Variable OH |
18,850 |
31,600 |
39,110 |
89,560 |
X = V + W |
|
TRACK IT: Factory FOH |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Fixed |
|
|
|
|
|
|
FOH budget |
70,000 |
70,000 |
70,000 |
210,000 |
Y = 840,000/12 |
|
60% paid in same month |
42,000 |
42,000 |
42,000 |
126,000 |
Z = Y x 60% |
|
15% paid in next month |
– |
10,500 |
10,500 |
21,000 |
AA = 15% of Y of previous month |
|
Payment for FOH |
42,000 |
52,500 |
52,500 |
147,000 |
AB = Z + AA |
|
Total OH |
60,850 |
84,100 |
91,610 |
236,560 |
AC = X + AB |
C: Cash Budget (July)
|
TRACK IT: Cash Budget |
|||||
|
Month |
July |
August |
September |
Total |
Notes |
|
Beg: Cash Balance |
250,000 |
194,810 |
52,650 |
250,000 |
|
|
Plus: Collections |
20,160 |
65,240 |
148,820 |
234,220 |
See H |
|
Cash Available |
270,160 |
260,050 |
201,470 |
484,220 |
XX |
|
Disbursements |
|
|
|
|
|
|
DM Payment |
– |
106,800 |
104,640 |
211,440 |
See Q |
|
DL Payment |
14,500 |
16,500 |
21,200 |
52,200 |
See S |
|
OH Payment |
60,850 |
84,100 |
91,610 |
236,560 |
See AC |
|
Total Cash Payments |
75,350 |
207,400 |
217,450 |
500,200 |
YY |
|
Ending Cash Balance |
194,810 |
52,650 |
(15,980) |
(15,980) |
(XX-YY) |
