ACCT3 Week 9 Homework PDF

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13631559 Nguyen Lai

Tutorial Work Homework: ACCT Management: Exercise 2 (pg 14) Problem 13 (pg 32) Exercise 2 Question Financial and management accounting information serve different purposes. The following phrases are commonly used to describe either financial or management accounting.         

Must follow AASB Focused on past performance Timeliness is critical Emphasises reporting on the whole company Information is often less precise Future orientation Information is often ‘old’ Reports results by segments Highly customisable

Financial and management accounting information serve different purposes. The following phrases are commonly used to describe either financial or management accounting. Answer         

Management Accounting Financial Accounting Financial Accounting Financial Accounting Management Accounting Financial Accounting Management Accounting Management Accounting Management Accounting

13631559 Nguyen Lai

Problem 13 Question The accounting information system of Pro Fitness Equipment Ltd reported the following cost and inventory data for the year.

a. Calculate the cost of goods manufactured b. Calculate the cost of goods sold c. List the costs not included in the calculations of cost of goods manufactured and cost of goods sold, and discuss why you excluded them from those calculations d. If raw materials and work in process inventories had increased during the year, would the financial statements be different? How? Identify the direct, indirect and non-manufacturing costs before completing requirement a – d

13631559 Nguyen Lai Answer a. The calculation of cost of goods manufactured Description Item Work in process on hand at the Beginning inventory of WIP beginning of the period The amount of raw materials + Raw materials used used in production (Beginning inventory of raw materials + cost of raw materials purchase – ending inventory of raw materials) The amount of direct labour + Direct labour cost incurred The amount of manufacturing + Manufacturing overhead overhead incurred Work in process at the end of - Ending Inventory of WIP the period The cost of goods = Cost of goods manufactured manufactured during the period

Amount $11,000 $88,000

$115,000 $78,000 ($2,000) $290,000

b. Description Finished goods on hand at the beginning of the period The cost of goods manufactured during the period Finished goods on hand at the end of the period The cost of goods sold during the period

The calculations of cost of goods sold Item Beginning inventory of finished goods + Costs of goods manufactured

- Ending inventory of finished goods = Cost of goods sold

Amount $7,000 $290,000

($3,000) $294,000

c. Advertising costs and Selling and administrative expenses were not included in the calculations due to them being non-manufacturing costs d....