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) |
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