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Assessment Description
Learning Outcome 2:
Apply basic costs and costing techniques to practical scenarios.
Learning Outcome 4:
Create a budget and a cost volume profit analysis given practical scenarios.
Work in teams (groups) of 3 members (you must obtain your lecturers approval for a group of a different
number). You may discuss the selection of teams with your lecturer, who may decide to allocate you into
teams or he/she may decide to form teams using a random process.
You must notify your lecturer of your teams by the Friday of week 6 and be prepared to be allocated into
teams if the lecturer so decides.
Any work which has been copied or shared between groups or teams will result in a Fail grade for all
students concerned. So please make sure that the answer to this team assignment is your own work and
not copied from any source.
Submission:
The assignment will need to be submitted electronically through the student portal use the link under
Assessments to submit the information.
Using Excel, answer the questions below. Use one tab per question and also include any written response
within Excel.
Note that marks are also allocated for professional presentation and the use of formulas within Excel.
Please check the marking sheet (included below) for each part to ensure that you have followed all
the guidelines for presenting your work.
Please make sure you follow the guidelines noted in your subject outline especially those relating to
presentation, late policy and academic integrity.
Assignment details:
QUESTION 1 (14 marks)
Jazza Ltd produces clocks at its Shenzhen factory. Each clock is put together in the Assembly Department
and then tested in the Testing Department.
In the Assembly Department, the process-costing system at Jazza Ltd has a single direct cost
category (direct materials) and a single indirect cost category (conversion costs).
Direct materials are added at the beginning of the process. Conversion costs are added evenly during the
process.
When the Assembly Department finishes work on each clock, it is immediately transferred to Testing.
Opening work in process is 60% complete with regards to conversion costs and closing work in process is
70% complete with regards to conversion costs.
REQUIRED:
Produce a production cost report in order to calculate the cost of clocks transferred out and the value of
closing work in process in the assembly department.
Assessment Information
QUESTION 2 (15 marks)
Moo Dairy Limited is located in Tasmania and produces organic Milk, Yoghurt and Ice-cream from its state
of the art production facility.
The initial joint cost of production is $1,200,000 for the year. This cost results in an output of
2,000,000 litres.
REQUIRED:
1. Allocate the joint cost between Milk, Yoghurt and Ice Cream using:
b) The Relative Sales Value Method. Round percentage to 2 decimal places. (3 Marks)
2. Moo Dairy Limited has a request from a prospective customer to further process all its Ice Cream
production into Gourmet Ice Cream which will then be bought by the customer for $12.00 per litre. This will
increase the separable costs of ice cream per litre to $2.60.
Would you advise the company to accept the offer? Why or why not? (6 Marks)
Assessment Information
QUESTION 3 (21 marks)
Vestas Ltd manufactures watches and has decided to prepare a cash budget for the quarter ending 30
September 2017.
As at 1 July 2017, the Cash at bank ledger account had a debit balance of $50,000.
The following estimates have been made for the next three months:
Electricity expenses and insurance expenses are paid the following month after they are incurred. June
expenses were as follows:
Electricity expenses $8,000
Insurance expenses $35,000
REQUIRED:
Part A: Prepare a schedule of cash receipts from debtors for the period ending 30th September 2017.
(7 marks)
Part B: Prepare a Cash budget for the Quarter ending 30th September 2017. (14 marks)
Assessment Information
QUESTION 4 (9 marks)
Limited edition dresses Pty Ltd incurred the following costs for job number SH400, which consisted of 500
cocktail dresses for sale to a fashion store.
Direct material:
1 December Requisition no. 520: 900 metres of Cotton @ 8.50 per metre
16 December Requisition no. 101: 600 metres of Nylon @ $4.40 per metre
Direct labour:
16 December Timesheet no. 72: 500 hours@$24 per hour
Manufacturing overhead:
Applied on the basis of direct labour hours @$12 per hour
Additional information:
Job SH400 was completed on 16 December.
REQUIRED:
Prepare a job cost sheet including dates & requisition / timesheet numbers and record the information
given above and also a cost summary for job SH400.
Assessment Information
ACC 205 MANAGEMENT ACCOUNTING 1
Trimester 2, 2017: Assignment Marking Sheet
Group Name (if applicable):
Question 1 14
Question 2 15
Question 3 21
Question 4 9
Professional
4
presentation
(1 mark per question)
Total % 25%
Overall Comment:
Assessment Information