Assignment #3_October 2018.pdf - Assignment#3 Product...

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Assignment #3 _ Product Costing “Those who fail to prepare, are preparing to fail” Uriel Salmon Page 1 UNIVERSITY OF THE WEST INDIES OPEN CAMPUS ACCT1003 (MS 15B) - Introduction to Cost & Management Accounting Semester I 2018/2019 Assignment #3- Problems (10%) Assignment #3 is centred on the topic “ Product Costing ”, which covers Job Costing & Process Costing . You are required to work in your sub-groups and apply the concepts learnt is solving the problems given. The assignment seeks to examine the following selected course objectives: 1) State the journal entries necessary to record direct materials used, direct labour incurred and manufacturing overheads incurred & applied in a JC system. 2) Account for the completion and sale of jobs, in a perpetual JC system 3) Dispose of any manufacturing overhead variance, assuming the variance is immaterial 4) Prepare a statement of equivalent production, clearly showing the cost per unit by cost elements 5) Value units completed, unexpected losses and ending WIP 6) Determine the true loss of a manufacturing entity You are required to submit this assignment by Monday, November 12, 2018 by 11:55 p.m. E.C. Time. This is a GROUP assignment, which will account for 10% of your overall mark. You are required to show ALL workings where necessary. Specifications: MS Word or Excel Document (97-2003 Version) Font Size 12 GRADING: Computations 50 marks Understanding 4 marks Procedures/Algorithm 4 marks Presentation 2 marks Total 60 marks
Assignment #3 _ Product Costing “Those who fail to prepare, are preparing to fail” Uriel Salmon Page 2 Part 1 (25 marks) Pack Rite manufactures back packs for schools. The business uses a perpetual inventory system and has a highly labour intensive production process, so it applies manufacturing overhead based on direct labour hours. Any overhead variance is closed out to Cost of Goods Sold.

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