Managerial accounting - Essay Example

Utilization of manufacturing overhead: over application or under application Under application or over application of manufacturing overhead is given by the difference between expected costs and actual costs. Expected overhead cost for December= $ 200000 Actual costs= number of machine hours *rate per machine hours =6000*30 =180000 Therefore Under application of manufacturing overhead = expected coast- actual cost =200000-180000 =20000 Under application of manufacturing overhead cost during December is $ 20000.

Balance in finished goods inventory account on 31 December Finished goods inventory consist of the N11- 013 goods. The cost of finished inventory is therefore the total cost for N11-013. Total cost = direct materials+ direct labor+ overheads =8000+ 24000+ (1000*30) =32000+30000 = 62000 Therefore, closing finished goods inventory is equivalent to $ 62000. . th ended 30 November Physical units materials conversion total Beginning WIP 1600 - 800 Units started and completed 34000 34000 34000 Ending WIP 2000 2000 1000 Equivalent units 37600 36000 35800 Manufacturing costs 265680 172320 438000 Cost per equivalent units 7.38 4.8134 12.

1934 Assigned costs Completed and transferred 250920 163655. 6 414575.6 Ending work in progress 7380 2406.7 9786.7 Where the value of equivalent units is obtained from the formula Equivalent units = beginning WIP+ units started completed + ending WIP Cost of ending work in progress = unit cost*(*2000*50%) (Heisinger, p. 163) Question 3: Carvings for Cakes Pty Ltd Excel spreadsheet for calculating cost per unit of activity driver activity cost quantity cost per unit activity prepare annual accounts 5000 #DIV/0!

process receivables 15000 5000 3 process payables 25000 25000 1 program production 28000 1000 28 process sales order 40000 4000 10 dispatch sales order 30000 2500 12 develop and test products 60000 #DIV/0! load mixers 14050 1000 14.05 operate mixers 45900 200000 0.2295 clean mixers 6900 1000 6.9 move mixers to filling 3450 200000 0.01725 clean trays 20000 16000 1.25 fill trays 16000 800000 0.02 move to baking 8000 16000 0.5 set up ovens 50000 1000 50 bake cakes/ pastries 130000 1000 130 move to packing 40000 16000 2.

5 pack cakes/ pastries 80000 800000 0.1 inspect pastries 2500 50000 0.05 Bill of activities for Lamington bill of activities for Lamington cost rate cost drive level activity cost process receivables 3 500 1500 process payables 1 200 200 program production 28 100 2800 process sales order 10 400 4000 dispatch sales order 12 500 6000 develop and test products 600 load mixers 14.05 100 1405 operate mixers 0.2295 30000 6885 clean mixers 6.9 2000 13800 move mixers to filling 0.01725