Northern Queensland (FNQ) Products Company Essay Example

Mini Case Study

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24/08/ 2011

Table of Contents

Recommendation Page 3

Executive Summary Page 3

Introduction Page 3

Analysis Page 3

Recommendations and Conclusions Page 3

Appendix 1: Page 4

Appendix 2: Page 5

References Page 6

Recommendation

This report recommends that management of Far North Queensland (FNQ) Products Company to device new and modern mechanisms of data back up. This is in order to minimize or eradicate the event of the loss of critical information though fire or any in any other way.

Executive Summary

Following the loss of the company’s accounting records, there are various means that can be used to recover information needed to substantiate an insurance claim. The report provides a brief discussion of the two alternative methods of disposing of under-applied or over-applied overhead and its implications to the income Statement and the Balance Sheet.

Introduction

The person assigned with this job, provides relevant information as provided by the respective sources. This accounting information is used to calculate and derive the production records as at 31st July. Further, there is preparation of a Cost of Goods Manufactured Schedule and Cost of Goods Sold Statement.

Analysis

This is done though and analysis of Raw Materials Inventory, Work In process and Finished Goods Inventory.

Raw Materials Inventory Account Work In Process Account

Raw materials June 30 18,200 Work in Process June 30 12,440

Raw materials Purchases 16,400 Direct Materials 3,800

TOTAL July 31 34,600Direct Labour 2,400

TOTAL July 31 28,640

Recommendations and Conclusions

It is recommended that the management should establish new ways of data back-up

Appendix 1:

Cost of Goods Manufactured Schedule

Begging Balance plus Purchases 34,600

Direct Labour 2,400

Direct Materials 3,800

Manufacturing Overhead 74,400

Total Manufacturing Costs 115,200

Add: WIP June 30 12,400

Less: WIP July 31

Cost of Goods Manufactured

127,600

Appendix 2:

Cost of Goods Sold Statement

Finished Goods Inventory June 30 24,200

Add: Cost of Goods Manufactured 127,600

Goods available for Sale 151,800

Less: Finished Goods Inventory July 31 18,200

Cost of Goods Sold 42, 400

References

Helmkamp, JG, Management Accounting, 2nd Edition, John Wiley & Sons, Inc., New York