StudentShare solutions
Triangle menu

Project Management Accounting(BBAC501) - Essay Example

Nobody downloaded yet
To put this into lump light it would be good to know what constitute a cost in manufacturing process. Manufacturing Overhead Costs Stocks are normally classified as an asset in the financial statements, and it is very pertinent note that each product mentioned as en inventory includes the costs of the following: 1. Direct material 2. Direct labor 3. Manufacturing (or factory) overhead Direct material and labour costs are directly traceable to the product being produced. Manufacturing (or factory) overhead on the other hand consist of costs which indirectly relate to factory and on this regard they are divided and allocated to each unit of product. Accordingly this cost are reported in balance sheet inform of finished goods and work in progress (WIP) (GAAP). There are also other costs that would be treated as manufacturing overhead depending on the circumstances for instance, a loyalty or property tax imposed on a factory building. Although it will appear as fixed cost GAAP requires it allocation and assignment to each unit of manufactured product during such period. Other manufacturing overheads; 1. Material handling e.g. fork lifting opera oration for moving materials and units. 2. Technical expertise for setting up manufacturing equipment which requires some specifications. 3. Work force who inspect and supervise products as they are being manufactured. In my estimates the following are the assumptions which hold in my review 1. There was virtually no beginning inventory of raw material, work in process and finished goods. 2. At the end of the month, 10% of the materials purchased remained on hand, work in process amounted to 20% of the manufacturing costs incurred during the month, and finished goods inventories were negligible. 3. The factory occupies 80% of the premises, the sales area 15% and administration 5%. 4. Most of the equipment is used for manufacturing, with only 5% of the book value being used for sales and administrative functions. 5. Almost all of the electricity is consumed in the factory. 6. The truck is used to deliver finished goods to customers. 7. The manager spends about one-half of his time on factory management, one-third in the sales area and the rest on administration. Product Costing Cost ($) Cost ($)  Direct material 300,000 Direct labor 250,000 Prime Cost 550,000 550,000 Manufacturing (or factory) overhead Rent (80% of 80,000)Assp. No. 3 64,000 Production Supervisor's salary 35,000 Electricity (Assp. No. 5) 12,000 Manager's salary (80,000 x 1/2 Assp. No. 7) 40,000 Equipment depreciation (25,000x95% Assp. No. 4) 23,750 174,750 Total cost of production 724,750 Colonial Tap Company (CTC) Financial Statements for the month ended Cost ($) Cost ($) Sales 980,000 Less C.O.G. Total cost of production 724,750 Less Material at the end ( 10% of 300,000 Assp. No. 2) (30,000) Less Work in progress (20% of 174,750 Assp. No. 2 ) (34,950) 659,800 Gross Profit 320,200 Non Manufacturing Expenses Administrative Expenses Council Rates 5,000 Rent (80,000 x 15% Assp. No. 3) 12,000 Manager's Salary (80,000x2/3 Assp. No. 7 ) 266,667 Equipment ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Project Management Accounting(BBAC501) Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/111922-project-management
(Project Management Accounting(BBAC501) Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.net/finance-accounting/111922-project-management.
“Project Management Accounting(BBAC501) Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/finance-accounting/111922-project-management.
  • Cited: 0 times

Summary

Lecturer Subject Code Project Management Accounting (BBAC501) Colonial Tap Company (CTC  COLONIAL TAP COMPANY (CTC) FINANCIAL PERFORMANCE FOR THE YEAR ENDED Sales   $980,000 Less Expenses:     Material Purchased $300,000   Factory Wages-Production line $250,000   Production Supervisor’s Salary  $35,000   Rent  $80,000   Council Rates  $5,000   Sales Staff $110,000   Advertising  $18,000   Equipment Depreciation  $25,000   Electricity  $12,000   Manager’s Salary  $80,000   Truck Lease  $10,000   Total Expense   $925,000       Net Profit   $55,000  Comment on cost classification According to the financial statement pres…
Project Management Accounting(BBAC501)
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Project Management Accounting(BBAC501)"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Management accounting
Accountability 12 Conclusion 13 Reference 15 Abstract This study represents one of the most important areas of management accounting i.e. desirability and effectiveness of accounting for management control. Accounting is the most effective device used by managers and management for organizational control.
12 pages (3000 words) Essay
Management accounting
Specifically, the multi-divisional forms of business, which are the results of the emergence of large-scale business, led to a need for developing new forms of accounting. Furthermore, the strategic developments that were taking place occasioned new managerial structures, which in turn brought about the need to redesign the accounting system – these changes led to differentiation of management accounting on one hand and financial accounting on the other hand.
6 pages (1500 words) Essay
MANAGEMENT ACCOUNTING
This paper contains an introduction to the topic of discussion, literature review, a research methodology that was used to collect data, a section for analyzing the data, and a last section for conclusion. Table of Contents 1 1.0 Introduction 3 2.0 Literature review 4 2.1 Accounting 4 2.2 Management control/ accounting systems 5 2.3 Management accounting and decision-making 6 3.0 Research methodology 7 4.0 Analysis 8 4.1 Supporting arguments for Johnson and Kaplan’s (1987) argument 8 4.1 Arguments against the criticism issued by Johnson and Kaplan 9 5.0 Conclusion 11 References 12 1.0 Introduction The field of management has witnessed numerous transformations that are mainly attributed to
10 pages (2500 words) Essay
Management Accounting
Management accounting is a branch of accounting which mainly deals with various managerial aspects. This is primarily handled by the managers within the organization, and it is an essential component in taking appropriate decisions. The concept of management accounting comes under the Management accountant who is responsible for the preparation of financial statements, and management accounting report for appropriate decision making.
4 pages (1000 words) Essay
Accounting project
timately to capitalize on both the group member interest in environmental issues plus the growth in the sector per se coupled with the magnitude of public interest and awareness being nurtured by big business in other industries, for example, Wal Mart. Our proposal is to offer a
14 pages (3500 words) Essay
Management accounting
They play different roles in the process of satisfying the needs of the stakeholders of a particular organization. This essay attempts to provide a clear understanding regarding the differences that exist between the management
4 pages (1000 words) Essay
Accounting project
financial statements and cash flows, sales and profits or calculate ratios that will help us figure out how well or badly the firm is doing versus the others in the industry. Accounting may be on cash or accrual basis. Cash basis accounting assumes that no credit will be given
5 pages (1250 words) Essay
Accounting project
CIBC is engaged in the business of providing financial services to its clients. Canadian Tire has a retail division which offers different retail products like
6 pages (1500 words) Essay
Accounting Project
One such company is the Craft Brew Alliance (BREW) that distributes its bred beer nationwide. This company is showing significant
13 pages (3250 words) Essay
Accounting project
The company was booking sales months before the actual billing and shipment. Therefore, the company reported high revenues in their financial performance
4 pages (1000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Project Management Accounting(BBAC501) for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us