NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

Rating
4.8/5

# HI5017 Managerial Accounting

HI5017 Managerial Accounting.

1
Unit Code: HI5017
Unit Name: Managerial Accounting
Assignment: Tutorial Questions
Due: 13 October, 2020 at 11.59pm
Weighting: 50%
Total Assignment Marks: 50 marks
Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in
this unit
Unit Learning Outcomes Assessed:

Description: Each week students were provided with three tutorial questions of varying degrees of
difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard.
The Interactive Tutorials are designed to assist students with the process, skills and knowledge to
submit these answers in a single document.
2
The questions to be answered are:
Question 2 – Week 3 (7 marks)
Tik Tok Company manufactures customized coffee tables. The following relates to Job No.
X10, an order for 150 coffee tables:
Direct materials used \$22 800
Direct labour hours worked 600
Direct labour rate per hour \$16.00
Machine hours used 400
Applied factory overhead rate per machine hour \$30.00
Required:
a) What is the total manufacturing cost for Job No. X10? (3 marks)
b) Calculate the cost per coffee table for Job No. X10? (2 marks)
c) List two uses of this unit cost information to the managers at Tik Tok Company. (2 marks)
Question 2 – Week 5 (11 marks)
TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for
\$1,600. The production cost computed per unit under traditional costing for each model in
2019 was as follows:

In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the
gross profit on TRI-X was \$552 (\$1,600-\$1,048). Management is considering phasing out TRIX as it has continuously failed to reach the gross profit target of \$600. Before finalizing its
decision, management asks TikTok Electronics management accountant to prepare an
3
analysis using activity-based costing (ABC). The management accountant accumulates the

The cost drivers used:

Required:
1. Calculate the activity rates for each of the overhead items using the four cost drivers. (3
marks)
2. Using the rates in (1) determine the unit cost for TRI-X. (4 marks)
3. Calculate the gross profit of each model of TRI-X based on ABC costings and recommend
whether or not TRI-X should be discontinued. (4 marks)
4
Question 3 – Week 6 (11 marks)
A new company, is being established to manufacture and sell an electronic tracking device:
the Trackit. The owners are excited about the future profits that the business will generate.
They have forecast that sales will grow to 2,600 Trackits per month within five months and
will be at that level for the remainder of the first year.
The owners will invest a total of \$250,000 in cash on the first day of operations (that is the
first day of July). They will also transfer non-current assets into the company.
Extracts from the company’s business plan are shown below.
Sales
The forecast sales for the first five months are:

The selling price has been set at \$140 per Trackit.
Sales receipts
Sales will be mainly through large retail outlets. The pattern for the receipt of payment is
expected to be as follows:
Time of payment % of sales value
Immediately 15 *
One month later 25
Two months later 40
Three months later 15
The balance represents anticipated bad debts.
* A 4% discount will be given for immediate payment
Production
The budget production volumes in units are:

October
2,460
5
Variable production cost
The budgeted variable production cost is \$90 per unit, comprising:
\$
Direct materials 60
Direct labour 10
Total variable cost 90
Direct materials: Payment for purchases will be made in the month following receipt of
materials. There will be no opening inventory of materials in July. It will be company policy to
hold inventory at the end of each month equal to 20% of the following month’s production
requirements.
Direct labour will be paid in the month in which the production occurs.
Variable production overheads: 65% will be paid in the month in which production occurs and
the remainder will be paid one month later.
Fixed overheads are estimated at \$840,000 per annum and are expected to be incurred in
equal amounts each month. 60% of the fixed overhead costs will be paid in the month in
which they are incurred and 15% in the following month. The balance represents depreciation
of noncurrent assets.
Required:
a) Prepare a cash receipts budget schedule for each of the first three months
(July – September), including the total receipts per month. (3 marks)
b) Prepare a material purchases budget schedule for each of the first three
months (July – September), including the total purchases per month. (4 marks)
c) Prepare a cash budget for the month of July. Include the owners’ cash
contributions (4 marks)
6
Question 2 – Week 8 (7 marks)
Perfumes Ltd has two divisions: the Perfume Division and the Bottle Division. The company is
decentralised and each division is evaluated as a profit centre. The Bottle Division produces
bottles that can be used by the Perfume Division. The Bottle Division’s variable manufacturing
cost per unit is \$3.00 and shipping costs are \$0.20 per unit. The Bottle Division’s external sales
price is \$4.00 per unit. No shipping costs are incurred on sales to the Perfume Division. The
Perfume Division can purchase similar bottles in the external market for \$3.50.
The Bottle Division has sufficient capacity to meet all external market demands in addition to
meeting the demands of the Perfume Division.
Required:
a) Using the general rule, determine the minimum transfer price. (2 marks)
b) Assume the Bottle Division has no excess capacity and can sell everything produced
externally. Would the transfer price change? (2 marks)
c) Assume the Bottle Division has no excess capacity and can sell everything produced
externally. What is the maximum amount Perfume Division would be willing to pay for the
bottles? (2 marks)
d) When is it more appropriate to use market-based transfer price rather than cost-based
transfer price? (1 mark)
7
Question 3 – Week 10 (7 marks)
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and
Gamma. Information for these three products is as follows:

Total annual fixed costs are \$5,000,000. Assume the sales mix remains the same at all levels
of sales.
Required:
a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. (2
marks)
b) How many units of each printer must be sold to break even? (3 marks)
c) i) Explain what is margin of safety (1 mark)
ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are
25,000 units? (1 mark)
8
Question 3 – Week 11 (7 marks)
GEM Limited has a single product Flicks. The company normally produces and sells 80,000
units of Flicks each year at a price of \$240 per unit. The company’s unit costs at this level of
activity are as follow:

GEM has sufficient capacity to produce 100 000 units of Flicks a year without any increase in
Required:
(a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and
other special costs associated with this order would total \$42 000. The only selling costs
that would be associated with the order would be a shipping cost of \$9.00 per unit.
What would be the minimum acceptable unit price for GEM to consider this order?
(hint: GEM would not accept the order if it would reduce the company’s profit) (3 marks)

the company wishes to sell them through regular sales channels, what would be the
relevant cost for setting the minimum price? Explain. (2 marks)
(c) “All future costs are relevant in decision making.” Do you agree? Explain. (2 marks)
9
Submission Directions:
The assignment has to be submitted via Blackboard. Each student will be permitted one
submission to Blackboard only. Each student needs to ensure that the document submitted
is the correct one.
Holmes Institute is committed to ensuring and upholding Academic Integrity, as
Academic Integrity is integral to maintaining academic quality and the reputation of
integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches.
support resources. Many of these resources can also be found through the Study Skills
Academic Integrity breaches are a serious offence punishable by penalties that may
range from deduction of marks, failure of the assessment task or unit involved,
suspension of course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches

Source: INQAAHE, 2020
10
If any words or ideas used the assignment submission do not represent your original words
or ideas, you must cite all relevant sources and make clear the extent to which such sources
were used.
In addition, written assignments that are similar or identical to those of another student is
also a violation of the Holmes Institute’s Academic Conduct and Integrity policy. The
consequence for a violation of this policy can incur a range of penalties varying from a 50%
penalty through suspension of enrolment. The penalty would be dependent on the extent
All assessments will be automatically submitted to Self Assign to assess their originality.
Further Information:
the unit.

HI5017 Managerial Accounting

## Why US?

##### 100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

##### Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

##### Original Writing

We complete all papers from scratch. You can get a plagiarism report.

##### Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.