MANAGEMENT ACCOUNTING FOR COST AND CONTROL
• Task
The purpose of Assessment item 1 is to establish the skills needed in the workplace for costing products and services using the appropriate processes and tools and apply analytical processes to construct accounting systems and models using workplace tools. Each question uses realistic data and the professional practices similar to that found in workplaces.
Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions. It assesses learning outcomes as listed in the assignment rationale below.
QUESTION 1 Management accounting (4 marks)
What is the purpose of management accounting reports? Give examples (about 150 words).
See your text page 29 and the chapter 1 content. You may also choose to use Internet resources.
QUESTION 2 Control (4 marks)
What is meant by the control function of management accounting? Refer to the text chapter 1 material on Panopticism. Give examples (about 150 words).
QUESTION 3 Cost concepts (4 Marks)
What four purposes of product costing are identified in chapter 1 of your text? Give examples
QUESTION 4 Manufacturing statement and income statement (18 marks)
Spreadsheet. See the Spreadsheet Advice PDF in Interact2 Resources and the examples in your textbook.
Check the assignment requirements below paying particular attention to the spreadsheet requirements. Ensure you have separate data and report areas with the latter showing only formulas. Use IF functions to allow for the possibility of either a net profit or a net loss. Show row and column headings and paste both a normal view and a formula view.
See your text page 29, P1-13. The question below has been adapted from P1-13.
Adjustments are to be made in respect of the following:
(a) Accrued expenses: Salaries (Office) $5000, Salaries (Factory) $3000
(b) Insurance paid in advance, $2000
(c) Taxation expense for current year, $500 000
(d) Depreciation of factory plant, $35 000
(e) Insurance and rates are to be apportioned three-quarters to the factory and one-quarter to the office.
Required:
(a) Prepare a manufacturing statement for the year.
(b) Prepare an income statement for the year.
QUESTION 5 Labour cost concepts (8 marks)
See page 63 of your text.
A. Recording labour costs involves two interlocking double entries, reflecting the two aspects of labour costs to be accounted for. Explain. Give examples
B. Should overtime payments be treated as direct labour, or as overhead?
QUESTION 6 Understanding the entries in the Materials Control account (6 marks)
See your text page 64.
The Materials Control account balance was $20 000 on 30 June. Raw materials purchased during June cost $90 000. Direct materials issued to production during June were $50 000 and indirect materials consumed were $30 000.
Required:
Materials Control T-account to record these transactions and to determine the balance of Materials Control on 1 June.

QUESTION 7 Understanding the entries in the Accrued Payroll account (8 marks)
Salaries and wages payable to factory employees were $10 000 on 1 March and $4000 on 31 March. Gross salaries and wages paid during March totalled $40,000. March's direct labour totalled $18 000.
Required:
T-account for Accrued Payroll and general journal entries for recording salaries and wages earned by, and paid to, factory employees during March.
QUESTION 8 Payroll entries (8 marks)
See page 68 of your text.
The Patel Company has a gross payroll of $8 000 per day. Withholdings for PAYG taxes are $2400 per day. There are no other deductions from employees' earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the week is paid on the following Friday.
Gross payroll consists of $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions:

(a) What is the total amount to be credited to Accrued Payroll in respect of September earnings?
(b) If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on September 30?
(c) Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month.
(i) Show the weekly journal entry.
(ii) Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of September.
QUESTION 9 Activity Based Costing (10 marks)
Your employer is contemplating changing the existing traditional costing systems used in the business to adopt activity based costing (ABC). See your text page 81.
Prepare a business report outlining the traditional costing system and evaluate arguments for and against ABC. Use the Internet as a resource and academic journal articles (about 400 words excluding references). Use the Internet for advice of business report structures. For example, unilearning.uow.edu.au/report/4b.html
QUESTION 10 Service department cost allocation (20 marks)
Review the examples in your textbook and see page 100.
A. Create a manual, handwritten solution. Scan or use your phone to copy and paste an image in your assignment. If using a smart phone, consider using a free scanning app such as Camscanner, Office Lens or Google Drive or search for an app. Let us know which app you chose.
Use the algebraic method for the reciprocal services method.
B. Solve with a spreadsheet. Show the Matrix algebra solution.

Rationale
This assignment assesses your achievement of learning outcomes including:
o the application of cognitive skills in the design and operation of costing systems;
o being able to critically evaluate the design and operation of performance management systems
o manufacturing statements,
o job costing systems,
o Activity Based Costing (ABC),
o methods of service department cost allocation;
o the role of management accounting in organisational contexts,
o the implications for management accounting of different paradigms;
o the application of analytical and synthetical skills in report writing;
o quantitative techniques and computer software including
o using the Internet as a professional source;
o the creation and implementation of computerised decision models and;
o to critique how managers make decisions.
In particular, this assignment is designed to assess;
o your application of knowledge,
o understanding and skills in certain topics including cost flows in management accounting,,
o terminology,
o manufacturing statements,
o spreadsheet construction,
o product costing,
o materials acquisition systems,
o labour payment systems,
o accounting for overhead,
o business report writing,
o activity based costing, (ABC) and,
o the allocation of overhead including service department costs.

Marking criteria
For spreadsheet questions formula views showing row and column headings are important.
Your assignments will be marked as a whole with recognition being given to application of knowledge, quality thinking and application of skills. For some questions, students have a chance to demonstrate some creativity, or provide their own examples or give evidence of wider reading or structure a computer spreadsheet model in an innovative manner. We also need to avoid the snowballing effects of cumulative errors - that is, an error early in a practical question which carries through. Thus, a marking system is used with deductions for errors and omissions. Full marks are possible for well structured, complete, quality answers.
Any assignments with evidence of plagiarism may be referred to the university's academic misconduct processes and will receive a grade of zero. See www.csu.edu.au/faculty/business/studentresources/plagiarism
The marking criteria for your assignments will be based on the content of the subject as identified by the learning objectives as outlined above and at the beginning of each of the various topics as outlined in the Interact topics. Good spreadsheet answers will comply with the assignment requirements.
Example of marking criteria for an essay/business report.
Note that business reports are more structured than essays. Search the Internet for guidance on business report structures. Here is one example: www.business.unsw.edu.au/Students-Site/Documents/Writingareport.pdf
Criteria
Relevance of the answer - are the important issues raised in the question identified? Did the student answer the questions?
Critical capacity. Has reference material been carefully analysed or critically accepted?
Structure of the answer. Is the answer well-structured and the argument logically developed?
Writing style. Is the style concise and lucid or confused, making it difficult for the reader to get the point?
Scope of reading. Does the answer indicate a satisfactory coverage of literature relevant to the questions?
Answers should:
• be well planned with arguments flowing logically;
• use correct sentence structure, punctuation and spelling;
• present original ideas where appropriate;
• and present a justified conclusion and acknowledge all sources.
Note:
Normal distribution curves for grades are not utilised in this subject. Penalties will apply for late submission at 10% of the total mark available per day; it is important that submitted assignments are complete; omitted answers will result in mark deductions; refer to the University regulations contained in the CSU online handbook for matters pertaining to special consideration, misadventure and extenuating circumstances, academic misconduct, code of conduct for users of electronic facilities, assessment regulation, grading scale, progression and academic performance, grade point average, examination regulations and other matters pertaining to assessment. The regulations can be found at the University's web site: http://www.csu.edu.au
Criteria High Distinction Distinction Credit Pass
Criteria for expected learning outcomes to be achieved include critical evaluation of costing systems, demonstrating understanding and application of cost flows in management accounting, functions of cost flows in manufacturing, terminology, manufacturing statements, computer modelling, product costing, materials acquisition systems, labour payment systems, accounting for overhead, activity based costing, (ABC) and the allocation of overhead including service department costs.
Be the result of your original work, complete without any omissions and correct.
Evaluate all the issues raised in questions.
Provide examples where appropriate
Accurate answers complying with all spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete without any omissions, and be mostly correct.
Evaluate most of the issues raised in questions
Provide some examples where appropriate
Comply with the majority of spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete with few omissions, and be partially correct.
Evaluation of some of the issues raised in questions.
Provide examples where appropriate.
Comply with some of the spreadsheet requirements relevant to each scenario. Be the result of your original work, be mostly complete with some omissions, and be partially correct.
Evaluate some of the issues raised in questions
Provides 1-2 examples where appropriate
Comply with some spreadsheet requirements.
Academic writing skills. The discussion answers and business reports meet academic standards of syntax, vocabulary, spelling and punctuation and reflects an awareness of audience needs. Accurate use of syntax, spelling and punctuation; correctly refers to a variety of sources to support arguments, including the prescribed texts and a range of additional readings; reference list of the range of resources used, correctly formatted using APA style. Accurate use of syntax, spelling and punctuation; succinct and effective use of vocabulary; correctly refers to a range of sources to support arguments, including the prescribed text and a variety of further readings;
reference lists a range of relevant resources used, correctly formatted using APA style. Accurate use of syntax, vocabulary,
spelling and punctuation; correctly refers to more than the minimum requirement of sources to support arguments, including
prescribed texts and recommended readings;
reference list formatted in APA style, with few or no errors. Mostly accurate syntax, spelling and punctuation; correctly refers to minimum number of sources to support arguments, including prescribed texts; reference list used, formatted in APA style, with few errors.

Presentation
o Please read this in conjunction with the assignment requirements below.
o Single spacing and small margins are welcome to save paper.
o For any business report style questions a report structure is expected.
o Provide references throughout your assignment including page references to texts, articles, CSU resources and URL’s of websites.
o CSU uses the APA referencing style. See eportfolio.csu.edu.au/pebblepad/viewasset.aspx or refer to the CSU library
o Post enquiries to the Interact Discussions to clarify any assignment format issues.
o Acknowledge ALL sources used.
o At the end of your assignment include a complete Bibliography (Reference List) of resources actually used including the Internet, textbook, Study Topics, Software help files and videos supporting this subject.

Requirements
Assignment Requirements (also check the presentation expectations above).
1. On the first page of your assignment list all questions attempted and include an academic integrity statement that the work submitted is your own and that all sources used have been acknowledged.
2. Your Turnitin submission will consist of two files - a Word file and an Excel file.
3. Paste the spreadsheet solution and a formula view of each spreadsheet in the word file showing row and column headings for both. Paste the normal view first then the formula view. Your word file will provide a complete answer to every question. Use portrait orientation wherever possible. All data will be in the data entry area. The report area will contain no data - just formulas. Check the spreadsheet requirements carefully. You only need to submit a spreadsheet file for those problems specifying such. You can, if you wish submit spreadsheet solutions to other assignment questions but these do not need to comply with the spreadsheet requirements. Name the two files with your family name only as the file name. Record your name, student ID number and page number as a footer on every page of your assignments. Where you are asked to make changes in a spreadsheet, please highlight the changes.
4. Assignment solutions must be presented in the same sequence as set out in the Study Schedule.
5. See referencing requirements above in the Presentation section.
6. Your text and Interact2 resources may provide spreadsheet relevant templates.
7. For good spreadsheet design it is very important that you have completely separate data entry and solution/report areas. A good spreadsheet solution format is to key in the question in a structure which allows the solution to be completely formula driven. Thus NO data/numbers are entered into the solution/report area.
8. Create the spreadsheets as separate spreadsheets in one workbook. Name the tags at the bottom of the computer screen with the question number. See the examples provided with the Spreadsheet Advice PDF in Interact2 Resources.
9. Where appropriate, use the IF function to provide built-in checks etc. Variances? Net income or net loss?
10. How do you display potential negative numbers in brackets? Google the question! Hint. Format / Cells / Number and select Custom. Enter this: #,##0;(#,##0);0
11. Save each spreadsheet in your workbook with the cursor in cell A1 of the first spreadsheet.
12. Examples of spreadsheets are provided in the Spreadsheet Advice document in Interact2. You MUST read and follow these examples. If you choose to create spreadsheet solutions for other assignment problems, these solutions do not need to comply with the spreadsheet requirements.
13. Please check for viruses. Do not use macros in your files.
14. Keep a copy of all your work. Make copies of your work in progress in case your computer has an accident. Backup frequently.
15. It is imperative that you retain a copy of your assignments including your spreadsheets. Complete feedback will be provided to you with your grade and comments by the assessor.
You can discuss your work with other students prior to submission using the discussion forum. However, please do not post complete versions of answers to the forum. Do not leave assignments until the last minute.
The first page of your assignment should consist of the following parts:
o subject code and name;
o your name and student ID number;
o assignment task number;
o list of questions attempted and a list of questions not attempted;
o dates and details of any extension granted; usually include a copy of the approval email;
o an academic integrity statement that the work submitted is your own;
o an acknowledgement of all your sources, and
o a footer with your name, student ID and page number.
In today’s business environment we need verbal skills, writing skills, numeracy skills AND digital literacy skills. All of these skills are assessed throughout your study. It is suggested that you attempt the assignment questions week by week.
Solutions to questions should vary in length according to the nature of the question. Solutions to exercises and problem questions should be in a similar form to that demonstrated in the text.
Check the Assignment Requirements above AND the Spreadsheet Advice PDF. Also check the interactive videos.
You should normally submit the assignment only once. Multiple copies received by the University can result in unnecessary delays.