管理会计学

Xi’an International Studies University

IMPORTANT: YOUR ASSIGNMENT WILL NOT BE ACCEPTED FOR ASSESSMENT WITHOUT COVERING SHEETS!

BTEC HND PROGRAMME: Business and Finance

Unit No. 9 Unit Title: Management Accounting Assignment No. 1

Assignment Title: Calculating costs and preparing budgets

＊ TO BE COMPLETED BY THE STUDENT: STUDENT NAME: 戴衍 DaiYan（BT 31295） YEAR: Sophomore ISSUEDATE:___11/09/2010____ SUBMISSION DATE AND TIME: 11/14/2010

＊ STUDENTS MUST SUBMIT HARD AND SOFT COPY OF EACH ASSIGNMENT HARD COPY SHOULD BE SUBMITTED TO MAO MEI. AND SOFT COPYA ASSIGNMENT SHOULD BE E-MAILED TO THR FOLLOWING ADDRESS: Maomei2007@gmail.com I am aware that plagiarism is a serious academic offence and certify that the contents of this assignment are my own work. Where I have referred to ideas other than my own I have acknowledged this with a referenced bibliography. All grades are subject to confirmation by the external verifier STUDENT SIGNATURE:_________ DATE: 11/14/2010

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Introduction

Calculating costs and preparing budgets

I analyze three cases in this discourse.

In the first cases, I analyze Variable Cost, Fixed Cost, Period (selling and administrative) Cost, and Product Cost: Direct Materials, Direct Labour, Manufacturing overhead.

In the second cases, I according as Absorption costing analyze unit product cost in each year and income statement for each year. And if stock levels increase, absorption costing well report the higher profit. If stock levels decrease, absorption costing well report the lower profit, the stock levels is proportion with profit. And marginal costing is better than absorption costing in company.

In the third cases, I analyze budget, and the advantage of budget by to quantify a plan of action, to compel planning, can help managers control profit and operations. And the principal output of budgeting system, is a comprehensive profit plan that ties together all phases of an organization’s operations, producing departments can know how many product to producing in next year according sales budget, we can know clearly output and stock balance, dominate beautifully output and stock balance, we can provide product budget, material budget, machine budget and labor force budget.

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TASK1: Porter Company manufactures furniture, including tables. Selected costs are given below:

1. The tables are made of wood that costs $100 per table.

2. The tables are assembled by workers, at a wage cost of $40 per table.

3. Workers assembling the tables are supervised by a factory supervisor who is

paid $25,000 per year.

4. Electrical costs are $2 per machine-hour. Four machine-hours are required

to produce a table.

5. The depreciation cost of the machines used to make the tables totals $10,000 per year.

6. The salary of the president of Porter Company is $100,000 per year. 7. Porter Company spends $250,000 per year to advertise its products. 8. Salespersons are paid a commission of $30 for each table sold.

Required:

Classify these costs accounting to the various cost terms showed in the following table head.

Variable Fixed Cost Cost √ √ √ √ √ √ √ √ Period (selling and Product Cost administrative) Direct Direct Labour Manufacturing Cost Materials overhead √ √ √ √ √ √ √ √ 1 2 3 4 5 6 7 8

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TASK2: DC Company produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below:

Selling price per unit Manufacturing costs: Variable per unit produced Direct materials Direct labour Variable overhead Fixed per year Selling and administrative costs: Variable per unit sold Fixed per year Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory

5 70,000 YEAR 1 0,0 10,000 8,000 2,000 YEAR 2 2,000 6,000 8,000 0,0 11 6 3 120,000 $ 50

1. Assume that the company uses absorption costing. a. Compute the unit product cost in each year. Variable per unit produced: Direct materials Direct labour Variable overhead Fixed Total Year 1 11 6 3 12 32 12

Year 2 11 6 3 20 40