代写ACCT603 Management Accounting Assessment 1代写R语言

Question 1: Cost concepts and cost classifications     20 marks

Sunrise Electronics Limited has been struggling with persistent losses despite stable revenue. Concerned about the current situation, Jackson, the owner, requests a performance analysis to understand the underlying issues. When he approaches the management accountant, Lewis, he replies, “I only record the transactions. I’m not responsible for analysing them.”

Requirements:
Drawing on the management accounting concepts introduced in Week 1, do you agree with Lewis? Explain your response.                                                              (Word limit: 400 words)

Question 2: Cost concepts and cost classifications     25 marks

SwiftTech Support Services provides IT support to a variety of corporate and individual clients. A major cost incurred is technical support cost, which includes handling customer inquiries, troubleshooting software and hardware issues, and managing IT service tickets. The technical support costs for the last few months are listed below:

At a recent meeting, the leadership team was discussing the company’s technical support operations and encountered several dilemmas. The Chief Marketing Officer (CMO) believes that technical support costs are a variable cost, as the total cost fluctuates each month based on the number of clients served. However, the Chief Financial Officer (CFO) argues that $125,000 is a fixed cost (as this amount has remained relatively stable), with only the remaining cost fluctuating due to variable factors. So, the leadership team is uncertain whether technical support costs are a fixed, variable, or mixed cost.

SwiftTech has recently secured a major enterprise contract, which is expected to significantly increase client demand. The company anticipates serving approximately 6,500 clients in December and has provisionally allocated $128,500 for technical support costs that month. So, the company is not sure about whether this budget will be sufficient to cover the increased demand.

Requirements (show your calculations):

Prepare a report to the company’s CEO addressing their questions: i) explain cost behaviour using least square regression method; ii) determine whether the provisionally allocated budget is sufficient to cover the increased demand.        (Word limit: 500 words)

Question 3: Job-order costing       30 marks

Titan Precision Manufacturing Ltd. specializes in producing high-performance industrial equipment and uses a job-order costing system. The company applies manufacturing overhead using a predetermined overhead rate based on direct labour hours.

At the start of the year, the company estimated the following:

Manufactuunng overhead cost: $900,000

Direct labour hours: 50,000

Machine hours: 60,000

In August, the company completed Job #112, consisting of 50 custom-engineered machine components. The costs incurred for this job were:

Matenal coste- $180,000

Labour costs: $48,000, with workers paid $40 per hour

Machine hours used: 2,500

At year-end, the actual figures were:

Manufacturing overhead cost: $950,000

Direct labour hours: 55,000

Machine hours: 58,000

Based on the above information, the company’s current junior accountant needs to determine the unit cost per machine component for Job #112 that would appear on the job cost sheet. Additionally, she needs to calculate whether the company’s overhead was overapplied or underapplied and assess its impact on net operating income based on the above information. Since this is her first task and she has asked the management accountant for help.

The junior accountant has also been assigned a second task, where she needs to calculate the cost of goods manufactured (COGM) based on the following information:

Inventories:

Inventory Type                      Beginning ($)                   Ending ($)

Raw Materials                          30,000                            16,000

Work in Process (WIP)              42.000                            37.000

Finished Goods                         29,500                           35,000

Raw materials are all direct materials.

Additional Information:

Item                                                               Amount ($)

Purchase of direct materials                                  58,000

Direct labour cost                                                92,000

Manufacturing overhead (MOH) cost incurred          80,000

MOH cost applied to work in process                      68,000

However, the junior accountant believes that she lacks information on total manufacturing costs, which is needed to calculate the cost of goods manufactured. She again turns to the management accountant, for help in this regard.

Required (show your calculation):

Imagine yourself as the management accountant and prepare a report to help the junior accountant with her tasks, including: i) determine the unit cost per machine component for Job #112; ii) calculate whether the company’s overhead was overapplied or underapplied and assess its impact on net operating income; iii) calculate the cost of goods manufactured (COGM). Please show and explain your calculation.  (Word limit: 600 words)

Question 4: Process costing        25 marks

Swift Auto Parts Ltd. has recently started an automobile component manufacturing and uses the weighted average method in its process costing system. The following data are from the company’s machining department, the first department in its production process, for a recent month:

Work in Process, Beginning Inventory:

 Tnits in process: 500

Percent complete with respect to materials: 60%

Percent complete with respect to conversion: 30%

Costs in the Beginning Work in Process Inventory:

 Materials cost: $2,500

Conversion cost: $4,200

Production Data for the Month:

Units started into production: 18,000

Units completed and transferred out: 17,200

Costs Added to Production During the Month:

Materials cost: $80,500

Conversion cost: $245,000

Work in Process, Ending Inventory:

Units in process: 1.300

Percent comnlete with resnect to materials 75%

Percent complete with respect to conversion: 50%

However, the company does not have much prior experience in process-costing. It understands that each processing department needs to prepare a production report to show the total equivalent units, cost per equivalent unit, cost of ending inventory, and cost of units transferred out to the next department. But the company is not sure how to prepare such a report. It is thinking of appointing an external consultant to address this issue.

Required (show your calculation):

Imagine yourself as the external consultant and write a report to help the company with its issues/concerns. Your report should: i) compute total equivalent units; ii) compute cost per equivalent unit (rounded to four decimal places); iii) compute cost of ending inventory, and cost of units transferred out to the next department (rounded to two decimal places); and iv) prepare a cost reconciliation report. Please show and explain your calculation.       (Word limit: 500 words)