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ACC2CAD
Individual Assignment (20%)
Due Date: th
Submission: Submitted via LMS Turnitin
Word Limit: Approximately 1,000 words (excluding references)
Relevant Subject Learning Intended Outcomes
1. Describe, analyse and evaluate various costs types and cost behaviours.
Relevant Graduate Capabilities
 Inquiry and research
 Critical Thinking
Rationale
In this subject, you will develop your understanding of the elements of cost and management accounting, which provides organisations with relevant cost-related information to assist with their planning, controlling and decision-making. You will examine the process of identifying, determining, classifying, analysing and allocating costs to products and services. This assessment task gives you the opportunity to demonstrate and apply your understanding of product design and costing in a practical manner.
Task
You are required to design a product (not service) of your choice. It might be an existing product with your take on it or a new product that does not exist in the market. You need to undertake R&D to determine the design, characteristics and functions of your product, calculate its upstream cost, and provide an explanation as to why you want to produce this product. Then, you need to identify and determine your product’s production and downstream costs for 50,000 units manufactured. Finally, you need to determine the price of your product and how it will be marketed.
Please confirm your product with your workshop facilitator during week 4 workshop.
Instructions
1. Design your product and provide it a name and a description and visual/picture of it (this can be your own drawing or an image from the internet with your brand/logo assigned to the image). Explain why you selected your product (i.e. is there a demand for it? will it solve any social, environmental or financial issues? etc.).
2. Calculate your products R&D costs (as you will be undertaking the R&D, assign yourself an hourly wage rate based on market research and keep a record of the activities and how many hours it took you to design your product. This will determine your R&D cost).
Provide detailed explanations about your R&D processes/steps.
3. Undertake market research (i.e. search the internet) to identify, estimate and determine
the cost of your product’s direct materials, direct labour and manufacturing overheads
(fixed and variable). Clearly list and determine how much and types of materials, labour and overhead will be required to produce one unit of your product and calculate your products per unit cost. Explain the approach used to calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads.
4. During the month of January, the cost of your beginning inventory was $5,000 and ending inventory equalled $5,000, and you purchased materials to produce 50,000 units of your product. Calculate the cost of direct materials purchased and used in production for the month of January.
5. During the month of January, the cost of your beginning work in process was $30,000, and ending was $30,000. Calculate the cost of goods manufactured using a cost of goods
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manufactured statement/schedule (for 50,000 units of your product) for the month of January.
6. During January, the cost of your beginning finished goods was $50,000 and ending finished goods equalled $50,000. Prepare a cost of goods sold statement for the month of January for 50,000 units produced and sold to customers.
7. Determine the price of your product per unit and explain in detail how you determined the price (i.e. cost base used, the pricing method).
8. Undertake market research to identify and estimate your downstream activities and costs (i.e. marketing, packaging, handling, distribution and so forth) and explain in detail how you will market and distribute your product.
9. Prepare an income statement (using absorption costing) for the month of January for the 50,000 units sold. Your administrative expenses in January totalled $2,000, and company tax rate is 30%. Include all other relevant expenses for the month of January.
Submission Requirements
You need to present and submit the above requirements as a report using Word. The first page of your report should be a cover page with the subject code, your name and student ID and the name of your product. The second page should be a table of contents. The body of the report will include the requirements above (1-9) and each requirement needs to be clearly numbered. The last page should include your reference list in alphabetical order. You need to include references for the resources you used and referred to as part of your market research to determine your products costs, price etc. Please use the APA referencing style (please refer to the library resources if you need guidance with this style). The report needs to be page numbered and presented in a professional and well-formatted manner. Please ensure to provide full and correct statement headings with month and year for the cost of goods manufactured statement, cost of goods sold statement and income statement.
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Marking Rubric
Criteria
Mark Allocation
Standard (A, 80‐100%)
Standard (B, 70‐79%)
Standard (C, 60‐69%)
Standard (D, 50‐59%)
Standard (N, 0-49%)
Provides a detailed description of the proposed product and the products functions/characteristics and why it was selected.
10 marks
Provides an in depth and succinct analysis and explanation with detailed reasons for selecting and designing the product and its functions/characteristics. Provides detailed explanations as to whether product will help contribute to solving social, economic or environmental issues.
Provides a detailed description with reasonable explanations for selecting and designing the product and its functions/characteristics, and some discussion about social, environmental or economic implications of product.
Provides a clear description with limited explanations for selecting and designing the product and its functions/characteristics.
Provides limited and narrow explanations and reasons for selecting and designing the product and its characteristics.
Provides no descriptions for the design and selection of the product and its functions/characteristics.
Provides and determines a reasonable R&D cost for the product with explanations of the process and outcomes.
10 marks
Clearly assigns themselves a reasonable and realistic hourly wage rate (based on market research) and provides evidence of keeping a record of the activities and hours spent to design the product to determine the R&D costs. Provides detailed explanations of the R&D process and steps.
Assigns themselves a reasonable and realistic hourly wage rate (based on market research) and provides some evidence of keeping a record of the hours spent to design the product to determine the R&D costs. Provides reasonable explanations of the R&D process and steps.
Assigns themselves a reasonable hourly wage rate (based on market research) and provides limited evidence of keeping a record of the hours spent to design the product to determine the R&D costs. Provides limited explanations of the R&D process and steps.
Assigns themselves an hourly wage rate (not based on market research) and provides no evidence of keeping a record of the hours spent to design the product to determine the R&D costs. Does not explain the R&D process and steps.
No assignment of a reasonable hourly wage rate (based on market research) and no evidence of keeping a record of the hours spent to design the product to determine the R&D costs. Does not provide explanations of the R&D process and steps.
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Undertakes market research to identify, list and estimate a reasonable cost for direct labour, direct materials and manufacturing overheads to determine the products per unit cost.
15 marks
All relevant materials, labour and overhead types/requirements of the product have been identified and their costs have been estimated using thorough market research and are realistic and appropriate for the product. Detailed explanations have been provided as to how the costs were identified and determined.
All relevant materials, labour and overhead types/requirements of the product have been identified and their costs have been estimated using some market research and are realistic and appropriate for the product. Clear explanations were provided for the determination of the costs.
The costs have been estimated using some market research and are realistic and appropriate for the product. Some explanations were provided for the determination of the costs.
Makes some reference to market research but does not explain how it determined the products production costs and per unit cost.
No costs have been determined and calculated.
Calculates the cost of direct materials purchased and used in production for the month of January for 50,000 units.
10 marks
Accurately calculates the cost of direct materials purchased and used based on the direct materials cost determined in requirement 3. Presents calculations in a detailed and clear manner.
Calculates the cost of direct materials purchased and used based on the direct materials cost determined in requirement 3.
Calculates the cost of direct materials purchased and used based on the direct materials cost determined in requirement 3 with some errors.
Calculates the cost of direct materials purchased and used not based on the direct materials cost determined in requirement 3.
No calculations of the cost of direct materials purchased and used.
Calculates the cost of goods manufactured using a cost of goods manufactured statement/schedule for 50,000 units for the month of January.
10 marks
Accurately calculates the cost of goods manufactured based on the product costs determined in requirements 3 and 4 using the correct cost of goods manufactured statement structure with
Calculates the cost of goods manufactured based on the product costs determined in requirements 3 and 4 with limited errors using the correct cost of goods manufactured statement structure.
Calculates the cost of goods manufactured based on the product costs determined in requirements 3 and 4 with limited errors without using a cost of goods manufactured statement.
Calculates the cost of goods manufactured not based on the product costs determined in requirements 3 and 4.
No calculations of the cost of goods manufactured.
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correct and full statement heading.
Prepares a cost of goods sold statement for the month of January for 50,000 units produced and sold to customers.
10 marks
Accurately calculates the cost of goods sold based on the product costs determined in requirements 3 and 4 using the correct cost of goods sold statement structure with correct and full statement heading.
Calculates the cost of goods sold based on the product costs determined in requirements 3 and 4 with limited errors using the correct cost of goods sold statement structure.
Calculates the cost of goods sold based on the product costs determined in requirements 3 and 4 with limited errors and without using a cost of goods sold statement.
Calculates the cost of goods sold not based on the product costs determined in requirements 3 and 4.
No calculations of the cost of goods sold.
Determines the price of the product per unit and explains how the price was determined.
10 marks
Determines a reasonable and realistic product price based on market research with thorough explanations of how the price was determined and calculated (i.e. clearly explains the cost base use and pricing approach).
Determines a reasonable and realistic product price based on market research with some explanations of how the price was determined and calculated (i.e. clearly explains the cost base use and pricing approach).
Determines a product price based on limited market research and limited explanations of how the price was determined and calculated.
Determines the product price with no explanations and calculations.
Does not determine the product price.
Undertakes market research to identify and estimate the products downstream costs with explanations of how the product will be marketed and distributed.
10 marks
All relevant downstream activities have been identified and explained and their costs have been estimated using thorough market research and are realistic and appropriate for the product. Detailed explanations have been provided as to how the
Majority of the downstream activities have been identified and explained and their costs have been estimated using some market research and are realistic and appropriate for the product. Clear explanations were provided for the
Limited downstream activities identified. The costs have been estimated using some market research and are realistic and appropriate for the product. Some explanations were provided for the determination of the
Makes some reference to market research but does not explain how it determined the products downstream costs and activities.
No costs have been determined and calculated.
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costs were determined and how the product will be marketed and distributed.
determination of the marketing and distribution methods and costs.
marketing and distribution costs.
Prepares an income statement (using absorption costing) for the month of January for the 50,000 units sold.
10 marks
Accurately prepares an income statement using the absorption costing format/structure with full and correct statement heading, including all other additional information in requirement 9.
Prepares an income statement using the absorption costing format/structure, including most of the other additional information in requirement 9.
Prepares an income statement using absorption costing, but not including all other additional information in requirement 9.
Prepares an income statement without absorption costing and not including the additional information in requirement 9.
Does not prepare an income statement.
Report Presentation.
5 marks
The report is well-structured, presented clearly and fluently and well formatted. Clearly follows the submission requirements stated in the assignment. Correctly uses APA style referencing and reference list is in alphabetical order.
The report structure reads well and meets majority of the submission requirements. Correctly uses APA style referencing and reference list is in alphabetical order.
The structure of the report needs some work on its organisation and formatting. Incorrect referencing style used and reference list is not in alphabetical order.
The report shows very limited evidence of structure, presentation and formatting and requires substantial work. Incorrect referencing style used.
The report has no clear structure or formatting. No referencing.
Total 100 marks