ACCTG 221: COST & MANAGEMENT ACCOUNTING ASSIGNMENT 2 (2023, Semester One)
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ACCTG 221: COST & MANAGEMENT ACCOUNTING
ASSIGNMENT 2 (2023, Semester One)
Instructions:
(1) Assignments are due on Friday, 7 April 2023, at 4:00 pm. You have one week for this assignment. Please answer all questions online on Canvas by the due date.
(2) Please answer all questions online on Canvas by the due date.
(3) By completing this assignment, you agree to the following declaration:
I understand that the University expects all students to complete coursework with integrity and honesty. I promise to complete all online assignments with the same standards and values of academic integrity. Any identified form of poor academic practice or academic misconduct will be followed up and may result in disciplinary action.
As a member of the University's student body, I will complete this assignment fairly, honestly, responsibly, and trustworthy. This means that:
• I declare that this assignment is my own work, except where acknowledged appropriately (e.g., use of referencing).
• I will not seek out any unauthorised help in completing this assignment.
• I declare that this work has not been submitted for academic credit in another University of Auckland course.
• I know that the University of Auckland may use Turnitin or any other plagiarism-detecting methods to check my content.
• I will not discuss the assignment's content with anyone else in any form, including, Canvas, Piazza, Facebook, Twitter, Chegg or any other social media within the assignment period.
• I will not reproduce the content of this assignment anywhere in any form.
• I declare that I generated the calculations and data in this assignment independently, using only the tools and resources defined for use in this assignment.
• I declare that I composed the writing and/or translations in this assignment independently, using only the tools and resources defined for use in this assignment.
• It is your responsibility to ensure that no one copies your work. Students with high similarity results on Turnitin face the risk ofbeing awarded a zero mark for the work and face potential disciplinary action.
Assignment 2 contains 45 questions, presented under two main questions: The allocation of service departments' costs and process costing (worth 100 marks). You must answer all questions on Canvas.
Use actual numbers (with all decimal places) for all calculations, but round the final answers to a full unit with no decimal places when answering the numeric questions on Canvas (unless asked otherwise). Numeric answers must be presented without using any explanation, comma, bracket, $, %, or any positive (+) or negative (-) sign.
Assignment Questions
Q1: Allocation of service department costs:
Jackson LTD has three production departments (P1, P2 and P3) and three service/support departments (S1, S2 and S3). Data regarding the original costs of all departments and the percentages of using supporting departments' services is presented in the following table:
|
|
|
Support depts |
Operating depts |
|
||
|
|
S1 |
S2 |
S3 |
P1 |
P2 |
P3 |
|
costs |
$148,642 |
$290,423 |
$441,437 |
$627,590 |
$806,717 |
$601,187 |
|
S1 % |
0% |
17% |
14% |
29% |
28% |
12% |
|
S2 % |
20% |
0% |
21% |
29% |
22% |
8% |
|
S3 % |
13% |
10% |
0% |
20% |
21% |
36% |
Required:
Please use the above information to answer questions 1 to 24 on Canvas (online). (42 marks)
Q2: Process costing
Alborz LTD produces a brand of smoke alarms called First Alert SA420, which involves two stages: preparation (the first department) and finishing (the second department). The company uses the weighted-average method of process costing for both departments.
The second department receives the outputs of the first department and calls it 'transferred-in at the beginning of the process. It starts working on transferred-in units and, at a later stage, adds its own materials into the process. The conversion costs are incurred evenly during the process, but the packing is added towards the end of the process. Normal spoilages are based on goods units that passed the inspection. Additional information regarding the percentage of normal spoilage and the stages in which materials and packaging are added is provided in the following table. Spoiled units are disposed of at zero net disposal value.
During March of the current year, the following data were recorded for the Finishing Department:
|
Generator |
Transferred in ($) |
Materials ($) |
Conversion costs $ |
Packaging Costs ($) |
|
BWIP ( 1st) |
$151,966.00 |
$126,638.00 |
$117,976.00 |
$0.00 |
|
Cost added during the period |
$294,992.00 |
$245,827.00 |
$229,012.00 |
$238,376.00 |
|
|
Physical units |
|
BWIP ( 1st) |
8,580 |
|
Started units during the month |
65,913 |
|
Good units completed and transferred out in the month |
59,594 |
|
EWIP (31st) |
10,429 |
|
% of completion of Opening WIP |
34% |
|
Materials added at: |
19% |
|
Normal spoilage rate |
2% |
|
Inspection point |
56% |
|
The packaging is added at: |
91% |
|
% of completion of Ending WIP |
70% |
Required:
Please use the above information to answer questions 25 to 45 on Canvas (online (58 marks).
Hit: After calculating the total spoilges, round down the normal spoilage to the full unit and then deduct it from the total spoilage to determine abnormal spoilage. In other words, normal and abnormal units have no decimal places. After that, calculate equivalent units for them
2023-04-06