Traditional costing, Absorption costing, Variable costing and ABC

Assalamualaikum,

Please refer to the attachment regarding the notes and some of the illustration of the said topic. Remember it is an exam material. Download the notes as the one that I put in the flipsnack will not last that long as I would be progressing to new topic using the same application.

Management accounting notes for Absorption, Variable and ABC

Aloo...Aloo

Junior Apprentice - Section 1 - Sem 2, 2019/2020

Assalamualaikum and dear students,

Welcome to my class and it has been quite some time that i haven't teach this module. Worry not because we can still have fun progressing this module till end of the semester.  Please find the link below for the information regarding the module. As for a start, I have attached the groupings and sorry guys, I had to divide you my way. I think it's fair for me and might not for you. Hahaha!

Also do have a look at the proposal guideline. You can use this to make a good submission with added information based on your group discussion. So here it is...

Presentation Guidelines

Budgetary control - Group Assignment

Group Assignment

As promise for my Management Accounting students, attached is the assignment for this semester. Download it and start cracking your head....

Since we have only 8 of us, so i just shrink the group to be two of 4 each. If you could do it in Excel, I would be very much appreciate it.

Submission date is the first day of class after Eidulfitri by 1700hrs.

Click here for the assignment

The Assignment - Budgetary Control

Stock evaluation

Dear students,

Sorry for the late posting. But below as promised, hahahaha!

The following information relates to the material purchases and issues for the month of May 2019;

May 2019
5	Issued to production	100kgs
10	Purchased	300kgs at RM6.80 per kg
15	Issued to production	250kgs
18	Purchased	100kgs at RM7.00 per kg
20	Issued to production	120kgs
22	Issued to production	80kgs
25	Purchased	100kgs at RM7.40 per kg

The balance of raw material on 1 May 2019 consists of 50kg at a price of RM6.50 per kg which were bought in April 2019 and another 100kg was purchased on March 2019 at a price of RM6.00 per kg. 

Required;

Prepare a Store Ledger Card to record the above transaction in May, using First-in First-out (FIFO), Last-in First-out (LIFO) and Weighted average method.

See you tomorrow guys!!

Absorption and Marginal Costing - Unit cost and Income Statement

Assalamualaikum,

In order for you to have more understanding regarding the topic, let's do some simple exercise.

Ainnazuha Scarf presents the following data for year 2019;

·        Opening inventory: 0 Units

·        Sales: 8,000 Units @ RM950

·        Production: 10,000 Units

·        Closing inventory: 2,000 Units

·        Direct materials: RM240

·        Direct labour: RM280

·        Variable manufacturing overhead expenses: RM100

·        Variable selling and administrative expenses: RM40

·        Fixed manufacturing overhead expenses: RM1,200,000

·        Fixed selling and administrative expenses: RM800,000

Required: 

Using the data given above, 

1. Compute the unit product cost of one bike under:

    - Absorption costing system.

    - Variable costing system.

2. Income statement

   - Absorption costing system.

   - Variable costing system.

CHFM - Ministry of Health

Project Paper - Individual Assignment

Assalamualaikum and Salam Sejahtera,

You can now download the project paper from the link below.
Happy answering!!!

Project paper for MOH

Learn ABC - Malu apa bossku!

KaplaBossKita a company produces two spare parts namely Bossku and Bosskau. The company currently allocated the overhead based on direct labour hours. It is recommended that the company use activity-based costing to charge overhead to products.

The company expects to produce 4,500 “Bossku” and 2,000 “Bosskau” in 2019. Each “Bossku” requires two direct labour hours to produce and each “Bosskau” requires one-half hour to produce. The direct material and direct labour costs included in the two products are as follows:

Item	Bossku	Bosskau
Direct material (per unit)	RM28	RM16
Direct labour (per unit)	RM18	RM5

Budgeted total factory overhead data for 2019.

Activity	Budgeted overhead RM	Estimated volume
Production setups	RM90,000	20 setups
Material handling	RM60,000	5,000kg
Packaging and shipping	RM150,000	6,000 boxes
Total factory overhead	RM300,000

Based on an analysis of the three overhead activities, it was estimated that the two products would require the activities as follows in 2019:

Activity	Bossku	Bosskau	Overall Totals
Production setups	5 setups	15 setups	20 setups
Material handling	1,000kg	4,000kg	5,000kg
Packaging and shipping	4,000 boxes	2,000 boxes	6,000 boxes

Required:

   Calculate the cost of each product using total overhead based on direct labour hours.      

   Calculate the activity cost rates for Setups, Material handling and Packaging and shipping. 

   Cost out the two products using an activity-based costing system. 

   State the advantages and disadvantage of Activity Based Costing for the above situation.

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Limited seats and limited time....Having fun while gaining knowledge!

Revision of final accounts - JomSpa

A day spa is a business that provides a variety of services for the purpose of improving health, beauty and relaxation through personal care treatments such as hair, massages and facials. A day spa is different from a beauty salon in that it contains facilities such as a sauna, pool, steam room, or whirlpool that guests may use in addition to their treatment. A day spa is different from a destination spa as no overnight accommodation is provided. 

In contrast, a destination spa offers similar services integrated into packages which include diet, exercise programs, instruction on wellness, life coaching, yoga, Tai Chi and accommodations where participants reside for the duration of their stay. A resort-spa may also function as a day spa, if they allow access to patrons who are not guests of the hotel.

Enough reading, now is the time to put your knowledge on a piece of paper and submit your work.

You can download it here JomSpa

Jason Bourne - Final Accounts

The Bourne films are a series of action thriller movies based on the character Jason Bourne, a CIA assassin suffering from extreme memory loss who must figure out who he is, created by author Robert Ludlum.

All three of Ludlum's novels were adapted for the screen, featuring Matt Damon as the title character in each. Doug Liman directed The Bourne Identity (2002) and Paul Greengrass directed The Bourne Supremacy (2004), The Bourne Ultimatum (2007) and Jason Bourne (2016). Tony Gilroy co-wrote each film except for Jason Bourne and directed The Bourne Legacy (2012).

Damon chose not to return for the fourth film, The Bourne Legacy, which introduces a new main character, Aaron Cross (Jeremy Renner), a Department of Defense operative who runs for his life because of Bourne's actions in Ultimatum. The character of Jason Bourne does not appear in Legacy, but mention of his name and pictures of Damon as Bourne are shown throughout the film. Damon returned for the fifth installment, Jason Bourne.

The Bourne series has received generally positive critical reception and grossed over $1.6 billion. It is noted for its use of real stunt work, in contrast to the growing use of computer-generated imagery in action scenes.

Either you print it or else...but this question is to be done in class on 6th March 2019.

Here is the file Jason Bourne series

Exercise - Cost Volume Profit Analysis and Relevant Cost

QUIZ 2 – COST VOLUME PROFIT ANALYSIS AND RELEVANT COST

Whynot the owner of Cannot Café is considering to produce a variety of pizza namely Apanama, Apadia and Apatu. Every pizza has its own selling price and cost based on their own machine capacity. Below are the information obtained regarding the said pizza;

	Apanama	Apadia	Apatu
Production units	9000	6000	5000
Sales (RM)	RM72,000	RM60,000	RM35,000
Variable cost	27,000	15,000	9,000
Fixed cost	24,000	30,000	16,000

The fixed cost consist of the rental of machines and the salary of designated chef for each pizza. The sales mix is expected to remain steady for the next 3 months.

Required:

1) Prepare the cost per unit for each of pizza for current production and sales.

2) How many pizza should Whynot produce in order to break-even (to the nearest figure)

3) Calculate the break-even point for each of the above pizza.

4) Prove your calculation in Ringgit Malaysia for the break-even point as mentioned in no.2 and no.3 above.

5) Say, Whynot wanted to achieve a target profit of RM10,000, how many units
should he produce in order to achieve the desired figure?

6) Considering a production of a new pizza ‘Apadehal’, Whynot is targeting a sales of 5,000 units at RM8 per piece. Dreaming to achieve the target profit even further RM5,000 from the original target, the variable cost of this special pizza is half from the selling price and the fixed cost is estimated to be RM20,000. Should Whynot proceed with the plan and why not?

or else you can download and print this Quiz 2 - CVP Analysis and Relevant cost