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HI5017 Managerial Accounting Report Assignment Answers

HI5017 Assignment Report on Managerial Accounting

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Task:

 

Question 1

 

Required:

 

a) Which job(s) are still in process at the end of January, and what is the cost of this job(s)?

 

b) Which job(s) were completed at the end of February, and what is the cost of this completed job(s)?

 

c) What are the balances in work in process inventory, finished goods inventory, and cost of goods sold for March?

 

d) How does job costing in a service organization differ from job costing in a manufacturing organization?

 

Question 2

 

a) Discuss the circumstances that would require a business to change from traditional costing to ABC costing?

 

b) Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:

 

Required:

 

i) How much overhead would be allocated to each unit under the traditional allocation method?

 

ii) How much overhead would be allocated to each unit under activity-based costing?

 

iii) Would you recommend a change to ABC costing for this company? Justify your answer

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