Assessment Type: Case study – XXXXXXXXXX% word report and analysis - Individual Assignment.Purpose: This assessment is designed to allow students to demonstrate their ability to analyse given...

Assessment Type: Case study – 2000 + 10% word report and analysis - Individual Assignment.Purpose: This assessment is designed to allow students to demonstrate their ability to analyse given financial information relating to a management accounting problem, similar to real world problems, and present their findings and conduct analysis of this information as it applies to accounting concepts. It relates to learning outcomes a, b, c and d.Value: 20% Due Date: Week 10 – 9.00 am Monday of Week 10Submission: Students must upload their submission to the Moodle Assignment Link and Turnitin on the KOI Moodle Subject Home Page no later than 9:00 am Monday of Week 10. This is the submission due date and time. A printed copy should also be handed to the Tutor during that Week’s tutorial to assist with marking. All submissions must be accompanied by a signed KOI Assignment Coversheet.Topic: Management Accounting Problem (Case Study).Connectta Ltd manufactures furniture for computer work stations. Connectta uses a job costing system. The work in process inventory on 30 November consisted of the following jobs.On 30 November, the company’s finished goods inventory consisted of four items.At the end of November, the balance in Connectta’s materials inventory account, which includes both raw materials and purchased parts, was $668 000. Additions to and requisitions from the materials inventory during December included the following.Connectta applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totalled $4 500 000. The company planned to use 900 000 machine hours during this period, which is the firm’s estimated practical capacity. Through the first 11 months of the year, a total of 830 000 machine hours were used, and actual manufacturing overhead amounted to $4 140 000.ACC200 INTRODUCTION TO MANAGEMENT ACCOUNTING T119 05/03/2019 17:51 PAGE 9 OF 14 *AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: 72 132 629 979 CRICOS 03171AJob. No.DescriptionUnitsTotal costCC723Computer caddy20 000 $ 900 000CH291Chair15 000431 000PS812Printer stand25 000 250 000Total$1 581 000ItemQuantity and unit costTotal costComputer caddy7 500 units @ $64 each$ 480 000Chair19 400 units @ $35 each679 000Printer stand21 000 units @ $55 each1 155 000Desk11 200 units @ $102 each1 142 400 Total$3 456 400Additions and requisitionsRaw materialsPurchased partsAdditions$242 000$396 000Requisitions:Job CC72351 000104 000Job CH2913 00010 800Job PS812124 00087 000Job DS444(5000 desks)65 000187 000 Approved by KOI Academic Board for T1 2019ACC200During December, machine hours and labour hours consisted of the following:The jobs completed in December and the unit sales for that month are as follows:Required:1. Describe when it is appropriate for a company to use a job costing system.2. Calculate the balance in Connectta’s work in process inventory account as at 31 December.3. Calculate the cost of the chairs in Connectta’s finished goods inventory as at 31 December.4. Actual manufacturing overhead incurred in December amounted to $252 000. Calculate Connectta’s overapplied or underapplied overhead for the year.5. Explain two alternative accounting treatments for overapplied or underapplied overhead balances when using job costing system.6. Explain how activity-based costing could overcome the deficiencies inherent in the existing costing system.Task details: Students are to analyse the given information, make calculations where relevant and draw relevant, supported conclusions and make justified recommendations. Responses are to be formatted into a professional report for each part of each question, as would be expected of someone working in a modern accountant’s office. The report should include: title page, executive summary, table of contents, introduction, body, conclusion and reference list.Research requirements: Students need to support their analyses with references from the text and a minimum of six (6) suitable, reliable and academically acceptable sources. Check with your tutor if you are unsure of the validity of sources. Students seeking Credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking.AccountMachine hoursLabour hoursLabour costCC72312 00011 600$122 400CH2914 4003 60043 200PS81219 50014 300200 500DS44414 00012 500138 000Indirect labour-3 00029 400Supervision--57 600Total49 90045 000$591 100Job No.Production itemsQuantity completeditemsQuantity shippedCC723Computer caddy20 000Computer caddy17 500CH291Chair15 000Chair21 000DS444Desk5 000Printer stand18 000Desk6 000Marking Guide:Marks awarded will be based on the following criteria;1. Analyses-relevant to task specification 25%2. Costing techniques applied and evaluated 25% 3. Presentation 25% 4. Research 25%Marks will be scaled to a mark out of 20.