ACCT20076: Practical and Written Assessment

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Due date: Monday of week 9 (11:45 pm (AEST) 6 May 2024)
Weight: 20%
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Objective:
This assessment item relates to unit learning outcomes 1,2,3 and 4.
Details
The assignment must be completed as a group (2-3 students). Before starting this assessment,
please read the information on Plagiarism and Academic Misconduct on Moodle.
Students are to exhibit knowledge of the subject matter by demonstrating:
• Demonstrating accuracy in accounting calculations.
• Understanding and the ability to analyse and interpret the information from the calculations
undertaken.
• Breadth of quality of analyses and providing appropriate guidance to management
decision-making.
• Communication – use of appropriate grammar and the use of appropriate format.
• Correctly using the APA referencing system to cite academic sources in-text and in the
reference list.
Allocation of marks
Please refer to the marking rubric provided for this assessment task. Please ensure you use the
correct referencing style (APA style) as stated in the Unit Profile.
Formatting:
You must consider the case study provided and write an executive report using Microsoft
Word. Your report should be set out in an appropriate format under the following headings:
1. Title Page
2. Table of Contents
3. Executive Summary
4. Management Accounting Report
5. Recommendation and Conclusion
6. References
7. The report needs to use Times New Roman font, with a font size of 12.
Please adhere to the appropriate format and structure while preparing your report. Utilise the
tools available to you in Microsoft Word to create a polished and professional document.
Submission requirements
You must submit your assignment in Microsoft Word format electronically through the
secure upload facility in the Moodle system. Please do not email your assignment to your
lecturer or the Unit Coordinator. Please ensure all details are complete on the Cover sheet and
that it is your assignment's FIRST page. These are the minimum requirements as outlined in
the marking criteria available on the Moodle site. However, students should note that
satisfactorily meeting the minimum requirements will typically only result in the minimum
pass grade being awarded. Higher grades will be awarded to students that exceed these
minimum requirements. See the marking rubric for further details.
Assignment questions
Melody Musical Pty Ltd manufactures brass musical instruments for use in Primary and
Secondary Schools across Victoria. The company uses a job costing system in which
manufacturing overhead is applied based on direct labour hours. The company’s budget for
the current year included the following prediction.

Budgeted total manufacturing overhead $426,300

Budgeted total direct labour hours 20,300

During March, the firm began two production jobs:

• Job number T81, consisting of 76 trombones.
• Job number C40, consisting of 110 cornets.
The events of March are described as follows:
1,000 square metres of rolled brass sheet metal were purchased on credit for $5,000.
400 kilograms of brass tubing were purchased on credit for $4,000.
The following requisitions were filled on 5 March:
- Requisition number 112: 250 square meters of brass sheet metal @ $5.00 per square
meter (For job number T81)
- Requisition number 113: 1,000 kilograms of bras tubing @ $10 per kilogram (for job
number C40)
- Requisition number 114: 10 litres of valve lubricant @ $10.00 litre
- All brass used in production is treated as direct material. Valve lubricant is an indirect
material.
An Analysis of labour time sheets revealed the following labour usage for March.
- Direct labour: Job number T81, 800 hours @$20 per hour
- Direct labour: Job number C40, 900 hours @$20 per hour
- Indirect Labour: general factory clean-up, $4,000
- Indirect labour: factory supervisory salaries, $9,000
Depreciation of the factory building and equipment during March amounted to $12,000.
Rent paid in cash for warehouse space used during March was $1,200.
Electricity costs incurred during March amounted to $2,100. The invoices for these costs
were received, but the bills were not paid in March.
March council rates and property taxes on the factory were paid in cash, $2,400.
The insurance cost covering factory operations for March was $3,100. The insurance policy
had been prepaid in February.
Costs of salaries and on-costs for sales and administrative personnel paid in cash during
March amounted to $8,000.
Depreciation on administrative office equipment and space amounted to $4,000.
Other selling and administrative expenses paid in cash during March amounted to $1,000.
Job number T81 was completed in March.
Half (50%) the trombones in job number T81 were sold on credit during March for $700
each.

The 1st of March balances in selected accounts are as follows:

Cash $10,000
Accounts receivable $21,000
Prepaid Insurance $5,000
Raw material inventory $149,000
Manufacturing supplies Inventory $500
Work in process inventory $91,000
Finished goods inventory $220,000
Accumulated depreciation: Building and $102,000
equipment
Accounts payable $13,000
Wages payable $8,000
Required:
1. Executive summary (5 Marks - Maximum 300 words): The one-page executive
summary should offer a concise overview of the critical issues outlined in the case
study and provide a brief background context. Additionally, it must include a
summary of the key findings derived from your analysis.
2. Management Accounting Reports (10 Marks - Maximum 1,200 words): Provide the
Cost of goods manufactured (COGM), Cost of Goods Sold (COGS) and Income
Statement (I/S). Be sure to show all calculations for each of these reports. Accuracy
in your calculations will be crucial for scoring well in this section. Present the data in
a clear and organised manner to enhance the readability of your reports. In the report,
please include the following information:

*Details of T81 job costing including a job cost sheet, cost details and cost summary
*Prepare journal entries to record all cost items and prepare ledger accounts
*Show calculation of actual manufacturing overhead
 *Show the COGM, COGS and IS.
*Discuss about the efficiency in production process to convert from the raw
materials into Work-in-progress and finished goods. Is there any warning signal
shown in the process?
*Comment on the overapplied/ underapplied manufacturing overhead. Identify the
pros and cons of such overhead management
*Comments on the cash and liquidity management shown in March financial reports
* Comments on the Profit and Loss by the end of March.

3. Recommendation (5 Marks, Maximum 500 words): In the recommendation section,

you must provide detailed and justified recommendations based on your case study
analysis. Your recommendations should be well-reasoned and supported by evidence
from your findings.

*THE – END*