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Management Accounting Group Assignment

01 / 10 / 2021 Assignment

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repare a report (no more than 10‐pages) for Frank Burgess that addresses the following:
a) The purpose of a product costing system.
b) Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold. (The
schedules may be in the appendix). Explain why some items have been excluded from the
c) Complete the T‐accounts and determine the following:
i. Work in Process at the end of April;
ii. Raw materials purchased in April;
iii. Overhead applied in April;
iv. Cost of Goods sold in April;
v. Raw materials used in April; and,
vi. Over‐ or under‐applied overhead in April.
d) Discuss how overheads can be over‐ or under‐applied and how the company should deal
with the over‐ or under‐application.
e) Evaluate whether ABC should be introduced. (Hint: remember to consider both the costs and
benefits of any action recommended.)

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