AYB225 Accounting The Company: Sneakers Unlimited 代写

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AYB225 Accounting The Company: Sneakers Unlimited 代写

AYB225 - Report Page 1

QUEENSLAND UNIVERSITY OF TECHNOLOGY

QUT Business School

School of Accountancy

AYB225 Management Accounting

SEMESTER TWO 2017

ASSESSMENT ITEM TWO: REPORT

(Weighting Total: 30%)

Due Date and Time: 13 October 3 p.m.

Submission: Online submission via Blackboard

Group or Individual: Individual

Length: 1,000 words

This assessment item assesses the following learning outcomes:

Knowledge and Technological Skills (KS)

1.2 Apply technical and technological skills appropriate and effective for real world business

purposes and contexts.

Higher Order Thinking (HO)

2.2 Exercise independent judgment and initiative in adapting and applying knowledge and

skills for effective planning, problem solving and decision making in diverse contexts.

Professional Communication (PC)

3.1 Use information literacy skills, and communicate effectively and professionally in written

forms and using media appropriate for diverse purposes and contexts.

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This assignment is an individual assignment. This means you cannot collaborate with

anyone in any way in the completion of the Excel schedules and the answers.

Submission Requirements:

Your submission has two parts. Both parts must be submitted to Blackboard by the due date

and time for a complete submission of this assessment item. Refer to the instructions on

Blackboard under Assessment Item 2 regarding uploading of files.

1) Uploading of Files into Blackboard

a) Excel file containing the completed Schedules Part A

b) Answers to management questions using pro-forma Part B & C

Make sure you check your file once uploaded to ensure it is readable.

No marks will be given for submissions where the file is corrupt and unreadable.

This unit uses the Turnitin software to detect plagiarism. Turnitin compares submissions

to other submissions, both current and past, and sources that are available online such as

textbooks, scholarly articles, websites and blogs.

2) Entering Your Results to Part A into Blackboard

You are required to enter the results to Schedules 1-6 into the “Assignment Schedule

Answers” forms on Blackboard under Assessment Item 2. You have up to 5 attempts to

enter and check your results for each schedule. You do not have to use up all 5 of the

attempts. Only the last attempt will count towards your final mark.

Late Assessment and Extensions

In both your QUT study and your professional life you will be expected to meet deadlines. In

keeping with this expectation, assessment submitted after the due date will not be marked and

will receive a grade of 1 or 0%. If special circumstances prevent you from meeting the

assessment due date, you can apply for an extension. If you don’t have an approved extension,

you should submit the work you have completed by the due date and it will be marked against

the assessment criteria.

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Task Description

You are to assist the review process of Sneakers Unlimited’s costing system by providing management

with the following items related to the product line “Dance”.

A. Six technical reports with two supporting schedules. Management is considering various costing

system options. To facilitate their decision-making they have requested the preparation of these

schedules. The data and the schedules are in the Excel file on Blackboard.

B. Short answers to 2 questions from management. Your answers to each of the questions should

be complete, but also should be clear and concise, and in a form that is easy for managers to

read and understand. You may use bullet points if they assist in the presentation of your

answers. Answers must be written in acceptable Business English.

C. A discussion based on (i) Schedule 6 (ABC), (ii) the facts of the case (iii) and an article from

the literature.

**The full requirements of the assignment are on pages 5 and 6**

The Company: Sneakers Unlimited

Sneakers Unlimited is a manufacturer of men’s and women’s leisure shoes. What began as a small

family business has now grown into a firm with a large product range.

The firm produces three lines in the range – Dance, Run and Walk. The firm’s products have a relatively

short lifetime and often styles popular in one period are out of fashion by the next period.

The market for shoes is highly competitive because of several new entrants. It has therefore become

difficult to estimate the demand for shoes for the next period. This gives the production manager

flexibility over the quantities produced during each period. Given the current market conditions,

management is not concerned about the variability of demand from period to period.

Costing system currently used

The firm accounts for its products using standard absorption job costing, applying overhead to products

using a plant-wide rate based on direct labour hours. Materials purchases are recorded at actual cost.

Work in process and finished goods inventories are recorded at standard cost. All cost variances in the

period are transferred to cost of goods sold at the end of the period.

This existing costing system was established when only one type of sneakers was produced and when

overhead was a significantly smaller proportion of total cost than it is now.

Materials for sneakers are fabric, cottons, and depending on the styles, zippers, buttons, Velcro, laces

and logos. At the present time the only material which is traced directly to the product is fabric. Cottons,

buttons, zippers, laces, Velcro and logos are treated as indirect materials (overhead). All on-costs such

as superannuation, payroll tax, provisions for leave on wages are treated as indirect costs (overhead).

Standards are determined at the point when the product is initially designed, and efficiency variances

are regularly updated to reflect all changes in the manufacturing process. The firm prides itself on its

very efficient labour force, and in the past the company seldom had cost over-runs due to labour

inefficiency.

In the period which is the focus of this review, two changes were made in the manufacturing process.

First, a change was made in the layout of the manufacturing space which should reduce the standard

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time per product in the long run. The direct labour standards have not yet been updated to include this

change. Secondly, a new type of material was purchased from the current supplier. The supplier had

claimed that the new material (which is of high quality, yet cost a similar price to the old material) is

easier to work with in terms of both cutting and sewing. The supplier is known to be reliable in terms of

material supply.

Review of costing system

The firm is commencing an extensive review of its costing system and reporting practices. This review

will involve all divisions of the firm. Your task is only a small part of the entire review:

 One product only (“Dance” sneakers), and

 Selected tasks only - for example, a discussion on implementing Activity Based Costing

Some of the issues which have prompted the review are:

 Various pressures from competitors have alerted the firm to be more cost conscious. The firm

has had a number of issues with their product pricing recently. The firm sets prices based on a

mark-up on total cost (i.e. inventoriable (product) cost + period cost for each product). Various

inconsistencies have been identified when comparing Sneakers Unlimited prices with those of

its major competitors. As a result, the firm wants to have more confidence in the product cost

generated by the accounting system, in particular the cost of each individual product (Dance,

Run and Walk).

 In addition to product pricing, the costing data provided by the firm is now being used

extensively for other decision-making within the firm. This means that the accuracy of costing

data is becoming increasingly important.

 In recent times the firm has been faced with limited storage space at their premises. The firm

is unable, at this stage, to consider options involving a significant capital outlay to relocate or

rebuild. Further, Just in Time inventory is not an option for this firm. (Note: the recent change

in factory layout has no impact in any way on storage capacity.)

The requirements of the case begin on the next page. In addition to the tasks management have asked

you to complete, they have also indicated that there are a few issues that you are not to include:

 Ways of reducing costs - You are to take all costs as given, and at this stage not recommend any

particular ways of attempting to reduce or eliminate costs.

 Use all data as given, including all the fixed overhead figures without trying to fine-tune those

figures in any way.

 Management has stressed that your responses to the questions should be based only on the facts

with which you have been provided. Do not go outside these facts.

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Requirements of the Assignment

PART A: Completed Schedules in Excel (10 Marks)

Schedules (5 marks)

Complete Excel schedules in the appropriate spaces on pro-formas. Do not delete any parts of the pro-

forma. Show all required working in the relevant spaces, and only show required working.

 Variance report related to units produced. (Schedule 1)

 Calculation of standard costing cost variances relating to the product “Dance”. The firm

calculates price variances for all manufacturing costs, efficiency variances for all variable

manufacturing costs, and a fixed overhead volume variance. The material price variance is

calculated on usage. (Schedule 2)

 The Normal Absorption Costing Income Statement for the period, with relevant variances

expensed to the period and; recast the Income Statement (with relevant variances expensed to

the period) assuming Standard Absorption Costing. (Schedules 3 and 4, and a schedule to

calculate COGS)

 Show the journal entries for the period under the standard absorption costing system currently

used by the firm. Journal entries must be presented in proper form. (Schedule 5)

 Prepare a comparison of overhead costs per product under the existing costing system (a plant-

wide rate based on DL hours) with an Activity Based Costing system using the cost pools and

cost drivers identified in the data. (Schedule 6 and workings for Schedule 6)

ENTERING YOUR RESULTS INTO BLACKBOARD AND CHECKING OF FIGURES

Figures in the schedules (1, 2, 3, 4, 5 and 6) can be entered and checked on Blackboard up to 5 times

per student. It will indicate if your answer is correct or not. Zero mark will indicate that the answer is

wrong.

Excel (5 Marks)

 If you want to be eligible for up to 5 marks, then use formulas in your calculations. The formulas

will have to refer to other cells in the worksheet that either contain the original values, e.g. direct

labour cost per hour, machine hours per unit, order times etc. or to formulas from a previous

step. This means, every time the values in the data sheet are changed, the results are updated

automatically.

 To be clear, all worksheets are to be completed using formulas that draw values from the data

provided. In each worksheet, students will be deducted marks for each cell that contains a

numerical value that has not been obtained using an Excel formula. You must use an “if”

statement to enter the label “U” or “F” in the column next to the relevant variance value (see

the example in the worksheet).

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PART B: Answers to management questions (pro-forma provided) (8 Marks)

(1) Management is keen to know the breakeven point (BEP) for the firm.

a. Calculate the contribution margin for Dance based on the standard unit cost. (1 mark)

b. Given that Run and Walk have contribution margins of $50 and $70 respectively, what

is the BEP for the firm based on the budgeted production mix in the provided Excel

data sheet? (3 marks)

The use of Excel and formulas is not required for this part.

(2) Refer to the variances in Part A, Schedule 2 that you have calculated. Select ONLY ONE (1)

variance to follow up, i.e. the one that you think needs the most urgent attention (1 mark)?

Explain why you would choose that particular variance to follow up in the light of the facts

provided by the case (2 marks). Furthermore, in the light of the facts provided by the case, what

would be the most likely reason that this particular variance has occurred (root cause) (1 mark)?

 Do not use any citations in your answers to Part B

PART C: Discussion (pro-forma provided) (12 Marks)

Based on your analysis in Schedule 6 and the facts of the case, discuss why you would or would

not recommend ABC. Also, provide further evidence for your discussion by referring to at least

one (maximum three) article(s) from the literature (use the Internet or QUT’s database). Articles

from professional or scientific journals/magazines that report on costing system (e.g. ABC)

experiences will serve this purpose well. Textbooks such as Horngren et al. (2014) do not

qualify as an article. Use the AREA critical thinking framework document on Blackboard

under Lecture 2 to structure your discussion. Your discussion should be no longer than two

pages (1.5 line spacing).

Research and referencing

 Use in-text citations in your discussion in Part C. Under references, give the source of the

evidence, i.e. name of the author, year, title, and name of source. Please adhere to the APA or

Harvard referencing style.

 Your entire assignment must be written in your own words. Students should note that severe

penalties are imposed for plagiarism. If you are uncertain about what constitutes plagiarism,

refer to the School of Accountancy Blackboard site.

Errors and omissions: If you believe there is an error in the assignment, or that an essential

instruction has been omitted, please contact the Unit Coordinator.

Format and presentation of assignment

All students are required to follow the standardised format for their assignment. You must include the

items and setting out described below, and only the items requested. Do not add anything, e.g. do not

add headers/footers, do not add borders, pictures, extra pages. The assignment must be completed using

pro-formas in Excel and Word (see Blackboard) and comply with all instructions on all assignment

documents provided.

AYB225 - Report Page 7

Length of assignment

 Answers to management questions and the discussion (Pro-forma Part B & C) must be no longer

than three (3) single-sided pages, 1.5 line spacing, font 12.

 NOTE: The markers will only mark the first 3 pages; any more pages will be ignored.

Hints to maximise your assignment mark

General comments

Make sure that you:

 Answer the question asked, and only the question asked.

 Provide complete answers.

 Be concise

 Do not include unnecessary padding

 Use pro-forma Part B&C on Blackboard to structure your responses

 Do not go over the page limits: B = one page only and C = two pages only

 Make sure you check your file once uploaded that it is readable.

 No marks will be given for submissions where the file is corrupt and unreadable.

 This unit uses the Turnitin software to detect plagiarism. Turnitin compares submissions to

other submissions, both current and past, and sources that are available online such as

textbooks, scholarly articles, websites and blogs.

Comments regarding:

Part A: Excel

There is plenty of help on Blackboard/Internet regarding the use of Excel formulas. Make sure your

Excel model is completely dynamic. This means updating any of the values in the ‘Data for current

period’ worksheet will update the data in all the other worksheets automatically. The formulas do not

always have to refer back to the ‘Data for current period’ sheet but may refer to a cell in a previous

worksheet. This will make your formulas more readable and therefore less error-prone.

Part B: Question 2 –variance to follow up

Do not provide generic reasons from the textbook/lecture. You should link or base your reasons on the

facts of the case.

Part C: Discussion.

Be convincing and strengthen your argument using evidence from the business (or scientific) press. The

evidence should be as specific as possible and integrated into your discussion. For example, you could

find a case that describes the benefits of implementing a certain costing system in a company.

Conversely, you could use a case that documents some of the problems of a costing system, which would

then help you to argue against it. Standard textbook descriptions of advantages/disadvantages of certain

costing systems will not be as valuable.

AYB225 Management Accounting

Assessment Item 2: Report (Assessment Criteria Sheet) Weighting: 30%

Grade

7 6 5 4 <4 Marks

PART A SCHEDULES AND USE OF EXCEL (Worth 10%)

Part A

Accuracy of

Schedules (K.S. 1.2)

All schedules are

completed with total

accuracy. All required

working is shown

throughout.

All schedules are

completed with only

minor errors. All required

working is shown

throughout.

All schedules are

completed with varying

degrees of accuracy some

significant errors are

evident. Most working is

shown.

All schedules are

completed with varying

degrees of accuracy, many

significant errors are

evident. Not all working is

shown.

Schedules are incomplete

or missing and have major

inaccuracies. Working is

not shown or lacks

significant detail.

Part A

Correct Use of Excel

for Schedules (KS

1.2)

Accurate and complete

use of formulas. Clear

structure and professional

presentation

Accurate and mostly

complete use of formulas.

Clear structure and

professional presentation

Accurate but limited use

of formulas and unclear

structure with reasonable

presentation

Excel used without

formulas

No or limited use of Excel

PART B SHORT ANSWERS (Worth 8%)

Part B

Management

Question 1. BEP

(KS 1.1)

All calculations are

completed with total

accuracy. All required

working is shown

throughout.

All calculations are

completed with only

minor errors. All required

working is shown

throughout.

Calculations are

completed with varying

degrees of accuracy some

significant errors are

evident. Most working is

shown.

Calculations are

completed with varying

degrees of accuracy, many

significant errors are

evident. Not all working is

shown.

Calculations are

incomplete or missing and

have major inaccuracies.

Working is not shown or

lacks significant detail.

Part B

Management

Question 2. variance

(HO 2.2)

Thorough analysis of the

issues related to the facts

of the case, demonstrating

a high level of judgement

and reasoning skills

Very good analysis of the

issues related to the facts

of the case, demonstrating

very good judgement and

reasoning skills

Good analysis of the

issues related to the facts

of the case, demonstrating

good judgement and

problem solving skills.

Rudimentary analysis of

the issues related to the

facts of the case,

demonstrating fair

judgement and problem

solving skills.

Unsatisfactory analysis of

the issues related to the

facts of the case,

demonstrating limited

judgement and problem

solving skills.

PART C DISCUSSION (Worth 12%)

AYB225 Management Accounting

Part C

Discussion Criteria

1. - Activity Based

Costing (PC 3.1)

Demonstrates

professionalism in the

application of critical

thinking framework to

explore the issue and

justify the

recommendation. Choice

of literature is highly

appropriate and provides

clear evidence in support

of the recommendation.

Solid application of

critical thinking

framework to explore the

issue and justify the

recommendation. Choice

of literature is appropriate

and provides some

evidence in support of the

recommendation.

A reasonable attempt has

been made to apply the

critical thinking

framework to explore the

issue and justify the

recommendation. Choice

of literature is appropriate

and provides some

evidence in support of the

recommendation.

A cursory attempt has

been made to apply the

critical thinking

framework to explore the

issue and justify the

recommendation. Choice

of literature is adequate

but the link to evidence in

support of the

recommendation is weak.

Little or no attempt has

been made to apply the

critical thinking

framework to the issue or

AYB225 Accounting The Company: Sneakers Unlimited 代写

recommendation. Choice

of literature is

inappropriate or reference

is missing altogether.

Part C

Discussion Criteria 2

– Communication

and Structure (PC

3.1)

Writing and referencing is

concise and accurate.

Report is of a professional

standard and highly

appropriate for the

intended audience. All

formatting requirements

have been adhered to.

Writing and referencing is

concise and accurate.

Report is of a good

standard and appropriate

for the intended audience.

All formatting

requirements have been

adhered to.

Writing and referencing is

mostly concise and

accurate. Report is of a

reasonable professional

standard and somewhat

appropriate for the

intended audience. All

formatting requirements

have been adhered to.

Standard of writing and

referencing is fair and

mostly accurate. Some

attempt at writing for the

intended audience.

Formatting requirements

have been mostly adhered

Inappropriate standard of

writing and referencing.

Little or no attempt to

address the intended

audience. Formatting

requirements may not

have been adhered to.

TOTAL /30

Note that it is also possible to be awarded zero marks for each of the criteria. Zero would be awarded if the particular element had not been attempted.

AYB225 Accounting The Company: Sneakers Unlimited 代写