short assignment

School: Business, Innovation and Entrepreneurship Department: Business, Management and Finance Preston Campus 77 -91 St Georges Road Preston, Victoria 3072 AUSTRALIA NMIT CRICOS Code: 00724G Major Assignment YEAR : 2017 SEMESTER : 2 COURSE (S): Bachelor of Accounting HEBSBACC Associate Degree of Accounting HEBSACC11 Bachelor of Business HEBSBUS Associate Degree of Business HEBSBUSAD SUBJECT : Management Accounting 1 BACC212 /MPA703 CONTRIBUTION TO OVERALL ASSESSMENT : This assignment is worth 25 % of the overall assessment. DUE DATE : This assignment is due in on Friday, 29/9/ 2017 PARTICIPATION AND SUBMISSION REQUIREMENTS : This is a n individual assignment The assignment must be a typed self -contained report and professionally presented. You will be required to submit your assignments online via this Moodle site. Click on the assignment activity for details of your assessment including instructions, due dates, and where to find additional resources. To submit your assignment file(s), select the corresponding activity and then click the 'add submission' button. Upload your fil e(s) and then accept the assignment submission statement to submit your assignment for grading. Important: The assignment will only be considered as submitted when you accept the assignment submission statement and your grading status changes to submitt ed for grading . PLAGIARISM AND OTHER COMPLIANCE ISSUES : This report must comply with Melbourne Polytechnic policies and academic conventions for report writing, plagiarism and referencing. Your teacher will discuss these policies with you and further information is available on the Melbourne Polytechnic Student Intranet. ASSESSOR (S): Jenny Toh Page 2 of 4 pages This document is subject to change Student Name: Student I.D.: Year / Semester: Course: Subject Name: Lecturer: Assessor’s Use Only Date submitted: Date marked: Contribution to final mark: Mark achieved: ASSIGNMENT INSTRUCTIONS /QUESTIONS Students to answer both questions Question 1 - 10 Marks Question 2 - 15 Marks Page 3 of 4 pages This document is subject to change Question 1 Process costing: university enrolments The university is exploring the possibility of outsourcing part or all of its enrolment function. This function involves three separate processes: (a) Validation, where the new student’s secondary school results are sighted and the university’s offer of enrolment is validated. (b) Student records, where the student’s study program details for the current year are entered into the student record system. (c) Fees collection, where students pay their union fees and upfront course fees, if they choose to do so. The annua l costs of these three processes are: Cost Validation Student Records Fees Collection Staff salaries $60,000 $40,000 $35,000 IT and other equipment insurance 10,000 25,000 20,000 Equipment insurance 1,000 2,100 2,000 Telephone 1,100 3,300 2,000 Data processing 6,300 20,000 5,200 Postage 0 1,000 6,500 Consumables 3,000 35,000 9,000 Electricity 1,200 2,400 2,200 The university processes 14,000 student enrolments per year. Required: 1. Calculate the cost per student enrolment for each process. (2 Marks) 2. Calculate the total cost per student enrolment. (2 Marks) 3. Does the total cost per student enrolment provide a reliable estimate of the costs incurred to process each enrolment? Explain your answer. (2 Marks) 4. Apart from in forming its outsourcing decision, how might the university’s management use this information? (2 Marks) 5. Would you recommend estimating service costs for all major student services in the university? Explain your answer. (2 Marks) Page 4 of 4 pages This document is subject to change Question 2 Pacioli Pasta uses a process costing system. All material is added at the start of the production process. Direct labour and overhead are added at the same rate throughout the process. Pacioli’s records indicate the following production for March: Beginning inventory (70% complete as to conversion) 12,000 units Started during March 17,000 units Completed during March 26,000 units Ending inventory for March is 20 per cent complete as to conversion. a. Compute the equivalent units of production (EUP) for direct material and conversion costs using weighted average process costing. (5 Marks) b. Compute the EUP for direct material and conversion costs using FIFO process costing. (5 Marks) c. Reconcile the calculations in parts a. and b. (5 Marks)