ACCT 300 Management Accounting-replace a piece of machinery

ACCT 300 Management Accounting-replace a piece of machinery

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ACCT 300 Management Accounting

Task:

1. Assume you are a Red Seal Journeyperson and you operate your own business. You specialize in remodeling residential bathrooms and have a small crew of labourers that help you with large projects. In your own words, explain which costing system would be more appropriate for you to use and why (Job Order or Process Costing).

2. You’re a manufacturer of custom made golf clubs. A customer has placed an order for a complete set of golf clubs from you. Using Job Order Costing, compute the total manufacturing costs (DM, DL, and Mfg O/H) for Job Order #101

3.  GPB Manufacturers Incorporated is planning for their next fiscal year. They’ve called a meeting with their production managers, marketing managers, and strategic managers. Together the group has created various plausible scenarios. The CEO of the company has asked you to analyze two of these scenarios in further detail. Prepare the full projected income statements for Alternative #1 and Alternative #2. Determine what the best alternative is (base year, alt #1, or alt #2) and why.

4. GPB Manufacturers Incorporated is deciding whether or not to replace a piece of machinery. The new proposed machine would be able to produce more units to be sold. In addition, there will be annual savings due to being more energy efficient. Currently the disposal value of the existing machine is below its book value. This will result in recording a loss on disposal in our accounting records in the year of sale Should we sell our existing machine and replace with the new one?

5.There are only so many hours to a day and GPB Manufacturers Ltd has a limited number of labour force hours available to work on projects. The company is analyzing how to best allocate their labour force. Organize the below projects from best to worst use of our limited resource

6.You’ve received an unsolicited request to produce 10,000 units of your product for a new potential customer. The customer is trying to ‘get a good deal’ and doesn’t want to pay your listed sales price shown on your business website. Using the information below, determine whether you should accept or reject this proposal

ACCT 300 Management Accounting

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