ACC281补作业名单

Additional Assignment
Student ID	Last Name	First Name	Current Grade
11814679	Tang	Yidan	AA	0318012209836	唐一丹

ACC281补作业要求

ADDITIONAL ASSIGNMENT – 202430B ACC281

Due Date: Wednesday, 28^th August 2024

Value: 30%

Submission: Email to FOBJBS-Subject-Admin@csu.edu.au

Assignment Background:

To provide workplace context to this assignment you are to assume that you have been appointed to a graduate management accounting position within a hypothetical company named Panda Australia. Panda is an extremely successful multinational company. Panda manufacture a range of Fast Moving Consumer Goods (FMCGs) in Australia and New Zealand including several well-known pet food brands, confectionery brands, and consumer food brands.

You have been appointed to a Management Accounting role within Panda Australia commencing in their Wodonga pet food factory which is based at the firm’s Albury Wodonga head office. As part of your role you will be expected to provide advice around strategic and operational issues to management and production teams across several of Panda business units.

At the commencement of each question you are referred to the Topics which cover the material and accounting techniques needed to properly answer the question.

Question 1          Cash Flow Budget (20 marks)

This question has been designed to develop and test your capacity to design and work with Spreadsheet applications which are a critical tool in all forms of accounting practice, particularly management accounting. Marks are awarded for the simplicity and effectiveness of spreadsheet design as well as the accuracy of your answer. Each worksheet must have a data input section and a result/report section. Ideally, for ease of reading by management, these sections will be on the same worksheet. Data input sections allow budgets to be simply and easily adapted to changing business conditions.

This question relates to learning material and objectives from Topics 1, 2, and 3

The financial year master budget has been prepared for the new subsidiary Panda Pet Food Online which was originally established to deal with the surge in online sales following the Covid-19 pandemic. The online enterprise is budgeted to make a profit of just over $65,000 for the year. Sales for the Panda Pet Food Online business are expected to be as follows over the coming 2024 calendar year:

Month	$
Jan	90,000
Feb	105,000
Mar	142,500
Apr	188,000
May	200,000
Jun	295,000
Jul	120,000
Aug	135,000
Sep	172,000
Oct	168,000
Nov	142,000
Dec	140,000

Panda Pet Food Online cash collections are budgeted to be 60% in the month of sale, 25% in the month following sale, and 14% in the second month after sale. It is expected that 1% of sales revenue will not be collectable. Panda Pet Food Online pays for stock in the month it is sold and achieves an average mark up of 50% on cost price. Panda Online operates a just-in-time inventory system and has no carry forward inventory holdings. Other monthly expenses are as follows:

Expense	Cost per month
Warehouse Rent	25,000
Wages	15,500
Other	7,500

Panda Online expects to have cash on hand of $9,575 at the start of the calendar year. Sales for the months of November and December preceding the budget are expected to be $132,000 and $130,000 respectively.

Required:

1. Using an Excel spreadsheet prepare a cash budget for Panda Online for the financial year. Ensure you use a data input section so that any changes can be made to the budget. (10 marks)

2. Discuss any issues or problems that you can identify from the cash budget for Panda Online management. (5 marks)

3. Your accounts receivables manager advises that she can implement a credit policy which will improve cash collection to 78% in the month of sale and 24% in the month following, with 1% unrecoverable. Using the flexible budget previously prepared alter the input section to reflect these changes. What difference will the new credit policy make to Panda Online’s cash flows? Explain your answer. (5 marks)

Question 2          Manufacturing Cost Flows (20 marks)

This question relates specifically to the subject’s 1^st and 4^th learning outcomes. This question relates to prior learning in accounting and the material and readings covered in Topics 1 and 2 of the subject.

This question has been designed to develop and test your capacity to design and work with spreadsheet applications which are a critical tool in all forms of accounting practice, but particularly management accounting. Marks are awarded for the simplicity and effectiveness of spreadsheet design as well as the accuracy of your answer. Your worksheet must have a data input section and a result/report section.

You are provided with the following data about the Buddy dog food product line which is manufactured in one of Panda Ltd.’s factories in Albury Wodonga. Though a recognised multi-national corporation, these Panda Ltd. subsidiaries operate in Australia under Australian tax law where the corporate tax rate for large firms is 30%.

Account:	Jan 1, 2023	Dec 31, 2023
Work in Process	120,000	75,000
Raw Material Inventory	110,000	62,500
Finished Goods Inventory	55,000	125,000
Sales Revenue	4,950,000
Selling & Administrative expenses	375,000
Income tax	0.30
Raw Materials Purchased	450,000
Indirect Material	25,000
Direct Labour	500,000
Indirect labour	38,500
Factory heat, light and power	250,000
Depreciation of Factory Plant & Equipment	150,000
Other Factory Overhead	150,000

Required:

Using Excel prepare a cost of goods manufactured schedule, cost of goods sold schedule and an income statement. Your Excel model should include a data input section and appropriate formulae. (20 marks)

Question 3          Manufacturing Budget (30 marks)

This question builds on prior studies and relates to learning material and objectives from Online Topics 1, 2, 3 and 5. Links to specific resources provided for this question relating to Manufacturing Budgets and Excel spreadsheets can be found in the Online Topics.

The Panda Group Ltd has recently acquired Zorba Inc. which manufactures concrete imitations of ancient Greek artefacts which are sold to garden and home decorator retail outlets.

You have been asked to prepare a 5 year budget forecast for Zorba Inc.  For cost accounting reporting and budgeting, the Zorba Inc. factory employs a traditional manufacturing cost flow inventory and accounting system, however the company does not operate a Work-in-Process Inventory account.

Financial and production data from the Zorba Inc plant’s 2023 calendar year trading results are as follows:

2023 Year data
Sales (Units)	170,680
Price (average 2023 price received)	$65.00
Prime Costs (per unit)
Raw Materials	$16.65
Direct Labour	$11.95
Closing Inventory:
Raw Materials (15,000 units)	$1,760,000
Finished Goods (14,600 units)	$1,626,000
Variable Manufacturing Costs (per unit)	$6.20
Factory Management Salaries (per annum)	$313,000
Factory Plant & Equipment Depreciation (per annum)	$75,000
Sales and Marketing Costs (per annum)	$268,000
Finance Costs (per annum)	$226,000
Non-Factory Administration Costs (per annum)	$519,000

In the 2023 calendar year Zorba recorded sales of 172,680 units at $65 per unit. Zorba has consistently achieved year on year sales growth of 6% and it increases its selling price each year in line with the projected rate of inflation.

The Zorba factory has a target safety stock of raw materials inventory for production amounting to the equivalent of one (1) week of the current year’s budgeted unit sales. For Finished Goods inventory purposes the plant aims to maintain a finished goods inventory equivalent of one (1) week of the current year’s budgeted unit sales. As per the data provided above, on December 31, 2023 there was enough raw materials on hand to manufacture 15,000 units (valued at $1,760,000) and 14,600 completed units (valued at $1,626,000) were in Finished Goods Inventory.

Panda group management believes these trends will hold for the foreseeable future and wish you to develop a 5 year budget of the firm’s operations.

Zorba has a practical production capacity of 200,000 units per annum but may rent additional factory space from the commencement of the 2024 financial year for an extra $200,000 per annum. This additional production space will allow it to increase its production by 50%. Inflation is forecast at 2.5% per annum over the budget period.

Factory depreciation is calculated on a straight-line basis and adjusted for inflation to reflect the replacement cost of capital. All other costs including direct labour, raw material costs, and other overhead and administration costs are expected to increase annually at the rate of inflation. The FIFO method is used for cost of goods sold.

Required

(i) Using Excel develop a Sales, Production and Purchase budget as well as a budgeted Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an Income Statement for each of the 5 years in the budget period (commencing January 1, 2024) (advice on the form of these budgets will be provided by the CSU lecturer). This budget must also take into account the current practical capacity production constraint of the Zorba Inc. Your spreadsheet must be flexible and so include a data section which enables inputs (such as the inflation rate, budgeted cost and sales increases, and the production limit) to be simply altered so that ‘what if’ analysis to be undertaken.  (15 marks).

Hint: First calculate production without the capacity constraint. Then use Excel's "IF" command to derive budgeted production with the capacity constraint. You will then need to derive sales and end-of-year inventories based on budgeted production with the capacity constraint.

(Excel resources are provided in "Readings and Resources". Your CSU lecturer will also be working through Excel applications in class)

(ii) Using the model developed in part (i) calculate the impact on sales and profit if the option of renting extra factory space is exercised. (Submit results as a separate worksheet) (5 marks)

(iii) Given your findings from part (i) and (ii) write a report for the CEO of Zorba Inc recommending whether to take up the option to increase production. In your report consider the strategic implications of the firm having extra productive capacity and advise the CEO of potential strategic actions that could be undertaken. (10 marks)

Hint: Q3iii of the assignment only requires an examination of the strategic implications of the additional capacity. Those familiar with capital budgeting may like to perform a net present value analysis over a range of range of interest rates (or calculate the internal rate of return). However, this is not a topic covered in this course (see Chapter 21 of the textbook) and students will not lose marks if they ignore the capital budgeting problem. The topic is covered in third-year accounting subjects, as well as finance.

Question 4          Process Costing (10 marks)

This question relates to learning material and objectives from Online Topic 5

The following data relates to Plastic Fantastic which manufactures extruded plastic and silicon parts for use in logistic storage facilities. Plastic Fantastic operate under a process costing system in which all Direct Materials are added at the start and Conversion Costs are incurred evenly over the whole of production.

On January 1^st 2024 Plastic Fantastic has 45,000 units in Work-in-Process (WIP) which are complete as to Direct Materials ($120,000) and 40% complete for Conversion ($17,700). 385,000 units are commenced during January and units completed and transferred to Finished Goods amounted to 400,000. Units in closing WIP are 25% completed.

The following costs were incurred during January:

Direct Materials                   $1,050,000

Conversion Costs                    $167,500

Required:

Using Excel prepare spreadsheet models to answer the following questions:

(i) Using the Weighted Average Cost Method determine the cost value of closing WIP and the cost value of goods transferred out during the period (5 marks)

(ii) Using the FIFO method determine the cost value of closing WIP and the cost value of goods transferred out during the period (5 marks)

Question 5          Ethical Case Study (20 marks)

Your company's Chief Financial Officer (CFO) has asked you to prepare ethical guidelines for her department and make recommendations for fostering a culture that promotes ethical awareness and ethical behaviour among the accounting staff. She has been examining two documents, issued by two well respected professional accounting bodies: the Accounting Professional & Ethical Standards Board (APESB) and the Consultative Committee of Accountancy Boards (CCAB). While both documents offer essentially the same structured approach to the resolution of ethical issues, they differ in style. Your CFO likes the APESB’s document for its detail, and in particular the 12-step approach (in Section 4), but she believes it can be made less formal and more accessible for staff. She offers CCAB as an example that offers a framework based on answering three core questions:

1. Which fundamental principles feature more prominently for safeguarding?

2. What would be your key considerations in your approach to resolving the dilemma presented?

3. What course of action would you take to resolve the dilemma?

As you are about to start work on the guidelines for ethical conduct, you get a call from an accounting peer who you studied with, Stephanie Jones. Stephanie has also graduated and now works for Fable Publishing which prints and distributes a range of products for the musical industry in Australia. The company has a bonus system based in part on whether reported profit exceeds budgeted profit. In 2023, for the first time in several years, the company has decided to pay a bonus to management staff. The Fable Publishing CEO Peta Treadgold was very pleased with the 2023 bonuses and advised the company’s finance director James Lang that bonuses should double for the 2024 financial year.

After that meeting with the CEO, James Lang, felt significant pressure to maintain the bonuses by ensuring that reported profit remained at a high level in comparison to budget. Turners Supplies Ltd supply most of the production material and machinery for the manufacture and printing of the Fable Publishing texts and over time Lang had developed a close relationship with Peter Roberts the lead management accountant for Turners Supplies. Lang advised Roberts that strict limitations on operational costs had been imposed by Fable senior management and asked that Turners Supplies invoice 50% of purchases of production materials as depreciable machinery. To maintain a good relationship with Lang and Fable Publishing, who were major customers, Roberts agreed to the request.

Lang posted the materials purchases as depreciable machinery purchases meaning that they would appear as assets in the Balance Sheet rather than being expensed in the current year. This had the effect of increasing Fable Publishing’s profit in the current year and assuring bonuses for management.

Your friend Stephanie Jones, the management accountant for Fable Publishing, who reports directly to James Lang, noticed the overall decreased levels of production materials being purchased and also the increased purchases of machinery from Turners Supplies. She reported the discrepancies to James Lang, her line manager, who told her it was an accounting treatment that, in the long run, had no overall impact on profitability. Lang warned Stephanie not to get involved.

Required:

(a) Assign the 12 steps of the APESB’s framework (see Section 4) to one of the three questions asked of each case-study in the CCAB document (full references below). (5 marks)

(b) Based on your guidelines, what advice would you provide your friend Stephanie about the ethics of Lang’s actions? (10 marks)

(c) What action would you recommend Stephanie take (explain your reasoning)? (5 marks)

The documents referred to above are:

· APES GN 40 Ethical Conflicts in the Workplace - Considerations for Members in Business, March 2012, prepared by the Accounting Professional & Ethical Standards Board (APESB)

· Ethical Dilemmas Case Studies Professional Accountants in Business February 2022, prepared by the Consultative Committee of Accountancy Boards (CCAB).

Both documents will be provided on the subject Interact site under the Assessment 2 tab. Students are expected to also conduct their own research outside the text and online topic modules in order to respond to this case study. Ensure, that your work is at all times supported by serious scholarship. Students you only offer their personal opinions, without offering any support from the research literature, will be marked down.