Toturial 1 Managment Accounting PDF

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Tunku Puteri Intan Safinaz School of AccountancyBKAM2013 Management Accounting ISecond Semester 2020/2021 (A202)GROUP : GTutorial : 1Topic : 3Prepared For:Dr. Redwan Ahmed Ali Al-DhamariPrepared by:1. Mohamad Shariz Iman Bin Halim (LEADER) (273451)2. Siti Nur Asyikin BT Ma Hasan (272825)3. Muhammad ...

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Tunku Puteri Intan Safinaz School of Accountancy BKAM2013 Management Accounting I Second Semester 2020/2021 (A202) GROUP : G7 Tutorial : 1 Topic : 3 Prepared For: Dr. Redwan Ahmed Ali Al-Dhamari Prepared by: 1. Mohamad Shariz Iman Bin Halim (LEADER) (273451) 2. Siti Nur Asyikin BT Ma Hasan (272825) 3. Muhammad Hanafi Bin Abu Bakar (272832) 4. Muhammad Danial Haikal Bin Khairulrizal (280413) 5. Zulaikha Binti Sulaiman (280826) Date of Submission : 22 April 2021

QUESTION 1 INPU

Costs Direct labor hours Machine hours Direct labor costs Direct materials costs Manufacturing overhead costs Job No. 120 was started on 1 January 2020 and completed on 31 January 20 RBSB’s cost records shown the followin

Costs Direct labor hours Machine hours Direct labor costs Direct materials costs Manufacturing overhead costs

OUTPU (a)If RBSB uses a plantwide overhead rate: (i) Calculate the predetermined overhead rate for the year 2020. Predetermined overhead =

= = (ii) Determine the total of manufacturing overhead cost applied to Job 120. Direct Material Cost (+)Direct Labour Cost Total Manufacturing Overhead (b) If RBSB uses departmental overhead rate: (i) Calculate the predetermined overhead rate for each department for the year 2020. Predetermined Overhead :-

Department Moudling = = = Department Assembling = = = Department Assembling = = = (ii) Determine the total of manufacturing overhead cost applied to Job 120. Direct Material (+) Direct Labour Cost Total Manufacturing Overhead c) Between the plantwide rate in part (a) (ii) and the departmental rate i recommend to be applied for Job I recommend the departmental rate to be applied for job 120 because give

T

Moulding 10,000 50,000 RM50,000 RM120,000 RM180,000

Department Assembling 40,000 10,000 RM80,000 RM165,000 RM220,000

Finishing 8,000 10,000 RM50,000 RM70,000 RM20,000

020. This job was ordered by Wan Kemara School in Changlun, Kedah. ng information on the Job No. 120:

Moulding 200 100 RM2,000 RM5,000 RM4,000

Department Assembling 700 1,200 RM12,500 RM16,000 RM22,000

UT

Total Estimated annual overhead Total Estimated annual activity level RM420,000 RM180,000 2.33

RM23,500 RM45,500 RM69,000

Finishing 800 1,000 RM5,000 RM2,500 RM12,000

Estimated annual overhead Estimated annual activity level RM180,000 10,000 RM18 Estimated annual overhead Estimated annual activity level RM220,000 10,000 RM22.00 Estimated annual overhead Estimated annual activity level RM20,000 RM50,000 0.4

RM23,500 RM32,000 RM55,500 n part (b) (ii) above, which manufacturing overhead rate would you b 120? Justify your answer. an accurate data and also the high cost

QUESTION 2 The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Machine hours Manufacturing overhead cost

22,500 RM320,000

The company’s cost records revealed the following actual cost and operating data for the year: Machine hours Manufacturing overhead cost Inventories at year-end: Raw Materials Work in process (includes overhead applied of RM12,000) Finished goods (includes overhead applied of RM40,000) Cost of goods sold (includes overhead applied of RM152,000)

25,000 RM385,000 RM12,000 RM40,000 RM150,000 RM400,000

REQUIRED: (a) Compute the predetermined overhead rate. Predetermined overhead =

= =

Total Estimated annual overhead Total Estimated annual activity level RM320,000 22,500 14.22

(b) Compute the underapplied or overapplied overhead. Applied Overhead = RM 355,500.0 Actual Overhead RM385,000 Applied Overhead RM 355,500.00 Underapplied overhead RM 29,500.00 (c) Determine how much of the underapplied or overapplied overhead compute Process (WIP), Finished Goods (FG) and Cost of Goods Sold (COGS) on the ba that remains in each account at the end of the y Amount Percent Work in process RM 12,000.00 5.88%

Finished goods Cost of goods sold

RM RM RM

40,000.00 152,000.00 204,000.00

19.61% 74.51%

(d) Prepare journal entry to record the underapplied or overapplied overhead com Date 2020 Dec-31

Description Work In Process Inventory Finished Goods Inventory Cost Of Goods Sold Manufacturing Overhead

(e) What If Analysis: (i) Repeat Requirement (a) to (c), assuming the estimated machine hours is 24000 Predetermined overhead = = =

Total Estimated annual overhead Total Estimated annual activity level RM320,000 24,000 13.33

Applied Overhead = RM

333,250.00

Actual Overhead RM385,000 Applied Overhead RM 333,250.00 Underapplied overhead RM 51,750.00 Amount Percent RM 12,000.00 RM 40,000.00 RM 152,000.00 RM 204,000.00

Work in process Finished goods Cost of goods sold

5.88% 19.61% 74.51%

(ii) Repeat Requirement (a) to (b), assuming the actual manufacturing overhead c Predetermined overhead = = =

Total Estimated annual overhead Total Estimated annual activity level RM320,000 22,500 14.22

Applied Overhead = RM

355,500.00

Actual Overhead RM Applied Overhead RM

355,000.00 355,500.00

Underapplied overhead -RM

500.00

(iii) How would you adjust and record for the amount of underapplied or overapp

Work in process Finished goods Cost of goods sold

Amount Percent RM 12,000.00 RM 40,000.00 RM 152,000.00 RM 204,000.00

5.88% 19.61% 74.51%

(iv) Prepare journal entry to record the underapplied or overapplied overhead com Date Description 2020 Dec-31 Manufacturing Overhead Work In Process Finished Goods Cost Of Goods Sold (f) Explain why does a company apply predetermined overhead rates rather than a Since this calculation is more accurate, the corporation uses predetermined overhe overhead costs to jobs because this estimation is necessary which is the predeterm usually at the beginning of the year.

d in (2) will be allocated to Work In sis of the amount of overhead applied ear. Allocation of RM29,444.44 Balance of the Year RM 1,735.29 RM 13,735.29

RM RM RM

5,784.31 RM 21,980.39 RM 29,500.00 RM

45,784.31 173,980.39 233,500.00

puted in (c). Debit (RM)

Credit (RM)

RM1,735.29 RM5,784.31 RM21,980.39 RM29,500

0 only

Allocation of RM51,666.67 RM 3,044.12 RM 10,147.06 RM 38,558.82 RM 51,750.00 ost is RM355,000 (not RM385,000).

Balance of the year RM 15,044.12 RM 50,147.06 RM 190,558.82 RM 255,750.00

lied overhead computed in (ii). Allocation of RM500 RM RM RM RM mputed in (iii). Debit (RM) RM 500.00

29.41 98.04 372.55 500.00

Balance of the year RM 12,029.41 RM 40,098.04 RM 152,372.55 RM 204,500.00

Credit (RM) RM RM RM

29.41 98.04 372.55

assign actual manufacturing overhead costs to jobs. ead rates rather than assign actual manufacturing mined overhead rate is calculated in advance,

I Mixing RM300,000 4,500 RM120,000 8,000

Estimated overhead Direct labor hours Direct labor cost Machine hours

Job 1 RM12,200 RM4,200

Direct materials Direct labor cost Direct labor hours: Mixing Cooking Packaging Number of machine hours: Mixing Cooking Packaging

30 150 20 150 80 170

OU 1) Calculate a plantwide rate for Syarikat Techno based on machine hour TOTAL ESTIMATED OVERHEAD TOTAL MACHINE HOUR PLANTWIDE RATE

Manufacturing overhead Job 1 Job 2

Direct materials

670000.00 15000.00 44.67 Department Mixing RM RM

RM

6,700.00 4,466.67

Job 1 12,200.00

Direct labor cost Manufacturing Overhead Total Manufacturing Cost Markup(45%) BID PRICE

RM RM RM RM RM

4,200.00 17,866.67 34,266.67 15,420.00 49,686.67

2) Calculate departmental overhead rates for the three producing departm

Estimated overhead Direct labor hours Direct labor cost Machine hours Departmental Overhead rate

Direct materials Direct labor cost Manufacturing Overhead :Mixing Department Cooking Department Packaging Department Total Manufacturing Cost Markup(45%) Bid Price

Department Mixing RM

RM

300,000.00 4500 120,000.00 8000 37.50

RM RM

Job 1 12,200.00 4,200.00

RM RM RM RM RM RM

5,625.00 1,500.00 7,480.00 31,005.00 13,952.25 44,957.25

RM

3) What If Analysis: a) Repeat Requirement (1) and (2), if the bid price includes a 30% marku Bid price (RM)(30%) Job 1 Job 2

Plantwide rate (RM) RM44,546.67 RM53,516.67

NPUT Cooking RM150,000 15,000 RM180,000 2,000

Packaging RM220,000 3,200 RM120,000 5,000

Job 2 RM16,500 RM6,800 20 80 100 100 50 250

UTPUT rs. What is the bid price of each job using this rate?

Cooking RM RM

RM

Packaging Total 3,573.33 RM 7,593.33 RM 2,233.33 RM 11,166.67 RM

Job 2 16,500.00

17,866.67 17,866.67

RM RM RM RM RM

6,800.00 17,866.67 41,166.67 18,525.00 59,691.67

ments. What is the bid price of each job using these rates?

Cooking Packaging Total RM 150,000.00 RM 220,000.00 RM 15000 3200 RM 180,000.00 RM 120,000.00 RM 2000 5000 RM 10.00 RM 44.00

RM RM RM RM RM RM RM RM

Job 2 16,500.00 6,800.00 3,750.00 800.00 11,000.00 38,850.00 17,482.50 56,332.50

up over the full manufacturing cost. Departmental rate (RM) RM40,306.50 RM50,505.00

670,000.00 22700 420,000.00 15000...