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ACC2CAD: Types and Cost Behaviors

Relevant Subject Learning Intended Outcomes
1. Describe, analyse and evaluate various costs types and cost behaviours.

Rationale
In this subject, you will develop your understanding of the elements of cost and management
accounting, which provides organisations with internal financial and non-financial information to
assist with their cost 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 to opportunity to demonstrate and apply your understanding of
product design and costing in a practical manner. ORDER YOUR PAPER NOW

Task
You are required to design a product 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 products production and downstream costs for 1,000 units manufactured. Finally,
you need to determine the price of your product.

Instructions
1. Design your product and provide its name and a description and visual/picture of it (this
can be your own drawing or an image from the internet). Explain why you selected to
design and produce your product (i.e. is there a demand for it? will it solve any social or
financial issues? etc.).
2. Calculate its R&D costs (as you will be undertaking the R&D, assign yourself an hourly
wage rate and keep a record of how many hours it took you to design your product – this
will determine your R&D cost). Provide explanations about the R&D process and its
outcomes.
3. Undertake market research (i.e. search the internet) to identify, estimate and determine
the cost of your products direct materials, direct labour and manufacturing overheads
(fixed and variable). Determine how much materials, labour and overhead will be required
to produce one unit of your product and calculate your products per unit cost.
4. During the month of April, your beginning inventory was $2,000 and ending inventory
equalled $2,000, and you purchased materials to produce 1,000 units of your product.
Calculate the cost of direct materials purchased and used in production for the month of
April.
5. During the month of April, your beginning work in process was $30,000, and ending was
$30,000. Calculate the cost of goods manufactured using a cost of goods manufactured
statement/schedule (for 1,000 units of your product) for the month of April.
6. During April, 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 April for 1,000
units produced and sold to customers.
7. Determine the price of your product per unit and explain how you determined the price.

8. Undertake market research to identify and estimate your downstream costs (i.e.
marketing, distribution and so forth) and explain how you will market and distribute your
product.
9. Prepare an income statement (using absorption costing) for the month of April for the
1,000 units so. ORDER YOUR PAPER NOW

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