1. Polk Company manufactures basketballs. Materials are added at the beginning of the
production process and conversion cost are incurred uniformly. Production and cost data
for the month of July 2017 are as follows:
Production Data-Basket Balls
Preview of the Topic
To manage a business, you must understand
How costs respond to changes in sales volume,
The effect of costs and revenues on profit
To understand cost-volume-profit (CVP), you must know
How costs behave
Cost Behavior Analys
Costs can also be classified as product or period costs.
Product costs include all the costs that are involved in acquiring
or making a product.
i. Explain how overhead is assigned to production when a predetermined
overhead rate is used.
ii. What is under-applied overhead? When cost of goods sold is adjusted for underapplied overhead, will the cost in
LECTURE & TUTORIAL PLAN
ACC 3208 COSTING
LECTURE ON 24/8/2016 IS CANCELLED
REPLACEMENT WILL BE ANNOUNCED LATER DATE
1. Introduction to ACC3208
2. Instructions for Individual & Group
Successful students will be able to:
1. Discuss the role of management accountants in providing relevant information for management use in
planning, control and decision-making.
2. Distinguish the types and element
ACC3208 / Page 1 of 5
Suppose that you have been given a summer job as an intern trainee at Monorail (M) Sdn
Bhd, a company that manufactures railway cars and railway equipment for export to various
countries. The company, which is privately owned, has ap
Samudra Corporation Sdn Bhd incurred the following transactions:
1. Purchased raw materials on account RM 46,300.
2. Raw materials of RM 36,000 were requisitioned to the factory. An analysis of the materials
requisition slips indicated that RM 6,800 was c
The ledger of Custer Company has the following work in process account.
Work in ProcessPainting
Production records show that there were 400
1. This is a group assignment. Hence, no individual assignments will be accepted.
2. Each group should have 4-5 members only.
3. Please appoint a group leader for each group. Group leader is responsible f
Cardella Company applies overhead on the basis of direct labor costs. The company estimates
annual overhead costs will be $760,000 and annual direct labor costs will be $950,000.
During February, Cardella works on two jobs: A16 and B17. Summary data conce
2. Lott Company specializes in manufacturing a unique model of bicycle helmet. The model
is well accepted by consumers, and the company has enough orders to keep the factory
production at 10,000 helmets per month (80% of its full capacity). Lott's monthly
Adams Company sells a product for RM 14.00. Unit cost are as follows:
Variable Selling Expenses
Total fixed overhead is RM 44,000 per year, and total fixed selling & administrative exp
Dunstan Ltd manufactures tents and sleeping bags in three separate production departments.
The principal manufacturing processes consist of cutting materials in the pattern cutting room,
and sewing the material in either the tent or the sleeping bag depar
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and
water are mixed together and then bottled in 10-gallon drums. Brody provided the
following information for the year 2016:
Raw materials purchases
Jackson Company produces plastic that is used for injection-molding applications gears for
small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and
sold 3,500 tons. In 2017, the production and sales results were exac
Dilithium Batteries is a division of Enterprise Corporation. The division manufactures and sells a
long life battery used in a wide variety of applications. During the coming year, it expects to
sell 60,000 units for $30 per unit. The Divisional manager i
PTS Ltd is a manufacturing company which uses three production departments to make a
product. It has the following factory cost which are expected to be incurred in the year to
December 2015. The machining department and the finishing department is mainly