UNIVERSITY OF SALFORD Salford Business School BSc (Hons) Business and Management Financial and Management Information Systems CRN = 39347 ASSIGNMENT Overall Weighting in module = 25% Norton Ltd IDName Date of Issue: 15/03/2021 Date of Submission: 16/04/2021 Note: All answers to be prepared and presented in this answer book. The answer book should then be … Continue reading “Financial and Management Information Systems | My Assignment Tutor”
UNIVERSITY OF SALFORD Salford Business School BSc (Hons) Business and Management Financial and Management Information Systems CRN = 39347 ASSIGNMENT Overall Weighting in module = 25% Norton Ltd IDName Date of Issue: 15/03/2021 Date of Submission: 16/04/2021 Note: All answers to be prepared and presented in this answer book. The answer book should then be submitted through Turnitin ANSWER BOOK Task 1 Prepare a flowchart to describe the goods receiving and locating / storage process. (Use this page – to max 20 marks including 6 marks credit for software use, good style and clear presentation) Task:2 a.Norton Ltd Prime Costs (planned – March 2021 – To max 6 marks) Prime costs:Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Machining departmentQtyPrice / rate £Total £QtyPrice / rate £Total £QtyPrice / rate £Total £MaterialsLabourExpensesPrime cost:Prime cost:Painting departmentQtyPrice / rate £Total £QtyPrice / rate £Total £QtyPrice / rate £Total £MaterialsLabourExpensesPrime cost:Prime cost:Assembly departmentQtyPrice / rate £Total £QtyPrice / rate £Total £QtyPrice / rate £Total £MaterialsLabourExpensesPrime cost: Note to workings (Prime cost (direct costs) – To max 3 marks): Prime cost (per unit and in total) – To max 2 marks: Total Prime costs £÷ Units to be produced= Prime cost / unit £Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Total ALL products: Task:2 b.Norton Ltd Total (full) costs of production (planned – March 2021 – To max 3 marks) Overhead absorption rates:Total Overhead cost (given) £÷ Total basis hours (labour or machine hours)Overhead absorption rate (Oar) £ / hourMachining departmentPainting departmentAssembly departmentTotal overheads: Product overheads – To max 4 marks: Indirect production overheads:Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Basis hoursOAR £Overhead £Basis hoursOAR £Overhead £Basis hoursOAR £Overhead £MachiningPaintingAssemblyTotal:Total:Total: Note to workings (Full production costs / absorption costing – 3 marks): Full production costs – To max 4 marks: Prime costs B/fwd £+ Indirect production overheads B/fwd £= Total (full) cost £÷ Units produced B/fwd= Full cost per unit £Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Totals: Task:2 c.Norton Ltd Finished goods closing inventories / cost of sales (Planned March 2021 – To max 4 marks) Cost of sales and closing inventory:Units producedLess Units sold= Closing inventory (units)Cost of sales £Closing inventory £Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Totals: Note to workings (Cost of sales / closing inventory / Gross profits – absorption system) (To max 3 marks): Task:2 d.Norton Ltd Trading accounts (Gross profits and gross profit margins) (Planned March 2021 – To max 3 marks) Gross profits and margins:Order 1101 ‘Alpha’ £Order 1102 ‘Beta’ £Order 1103 ‘Omega’ £Totals £SalesLess cost of salesGross profit (Absorption system):Gross profit margin: Task:3 aNorton Ltd Contribution and C/S ratio (Planned March 2021 – To max 4 marks) Contributions and profitsOrder 1101 ‘Alpha’ £Order 1102 ‘Beta’ £Order 1103 ‘Omega’ £Selling priceLess variable / prime cost per unit= Unit contribution:C/S ratio:Totalx Units sold£= Total contribution earned:Less total fixed costs:Gross profit (marginal basis): Note to workings (Gross profits – marginal system / observations – To max 3 marks): Task:3 b.Norton Ltd Reconciliation of profits – (To max 4 marks) Difference in profits:£Gross profit (absorption system)Gross profit (marginal system)Difference (to be reconciled)Reconciliation:Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Total overhead÷ Total production (units)= Overhead per unitTotal (as above)X closing inventory (units)£= Overhead held in inventory: Note to workings (Reconciliation of profits / explanation – To max 3 marks): Task:4 a.Norton Ltd Recalculate gross profit (and margin) if product ‘Beta’ is removed (deleted) from the product range – (To max 4 marks) Contributions:Order 1101 ‘Alpha’ £Order 1102 ‘Beta’ £Order 1103 ‘Omega’ £Total £Contribution B/fwdLess Contribution lost (deletion)Contribution c/fwd:A Fixed costs:Total £Fixed costs B/fwdLess fixed costs savingsFixed costs c/fwd:B Adjusted profit (after deletion):£Adjusted profit after deletion (A – B) Reconciliation:Total £Profit (marginal basis) B/fwdLess contribution lostAdd fixed costs savingsAdjusted profit (as above) c/fwd: Task:4 b.Memo (To max 7 marks)To:Catharine SmithFrom:FMIS studentDate:29th March 2021Subject:Delete product from range (reply) Yours FMIS student Task:5 a.Norton Ltd Explanation of activity – based costing (ABC) (To max 10 marks) Activity – Based Costing (ABC) Task:5.b.Norton Ltd Recalculate gross profit (and margin) after allocating fixed production overheads using an ABC system (To max 6 marks) Overhead recovery (ABC System)Order 1101 ‘Alpha’Order 1102 ‘Beta’Order 1103 ‘Omega’Driver QtyRecovery rate £Overhead £Driver QtyRecovery rate £Overhead £Driver QtyRecovery rate £Overhead £Set – UpsInspectionsMachine hoursMaterials movementsTotal overheads:Total overheads: Profits (Marginal / ABC):Order 1101 ‘Alpha’ £Order 1102 ‘Beta’ £Order 1103 ‘Omega’ £Total £SalesLess variable cost of salesContribution:Less Fixed costs (ABC)Profits (Marginal / ABC):Profit margin on sales (%) Notes to Marginal / ABC profits (Workings / Observations – To max 4 marks):
