Project Management Accounting(BBAC501) Essay Example | Topics and Well Written Essays - 1250 words

Project Management Accounting(BBAC501) - Essay Example To put this into lump light it would be good to know what constitute a cost in manufacturing process. Manufacturing Overhead Costs Stocks are normally classified as an asset in the financial statements, and it is very pertinent note that each product mentioned as en inventory includes the costs of the following: 1. Direct material 2. Direct labor 3. Manufacturing (or factory) overhead Direct material and labour costs are directly traceable to the product being produced. Manufacturing (or factory) overhead on the other hand consist of costs which indirectly relate to factory and on this regard they are divided and allocated to each unit of product. Accordingly this cost are reported in balance sheet inform of finished goods and work in progress (WIP) (GAAP). There are also other costs that would be treated as manufacturing overhead depending on the circumstances for instance, a loyalty or property tax imposed on a factory building. Although it will appear as fixed cost GAAP requires i t allocation and assignment to each unit of manufactured product during such period. Other manufacturing overheads; 1. Material handling e.g. fork lifting opera oration for moving materials and units. 2. Technical expertise for setting up manufacturing equipment which requires some specifications. 3. Work force who inspect and supervise products as they are being manufactured. In my estimates the following are the assumptions which hold in my review 1. There was virtually no beginning inventory of raw material, work in process and finished goods. 2. At the end of the month, 10% of the materials purchased remained on hand, work in process amounted to 20% of the manufacturing costs incurred during the month, and finished goods inventories were negligible. 3. The factory occupies 80% of the premises, the sales area 15% and administration 5%. 4. Most of the equipment is used for manufacturing, with only 5% of the book value being used for sales and administrative functions. 5. Almost al l of the electricity is consumed in the factory. 6. The truck is used to deliver finished goods to customers. 7. The manager spends about one-half of his time on factory management, one-third in the sales area and the rest on administration. Product Costing Cost ($) Cost ($) Â  Direct material 300,000 Direct labor 250,000 Prime Cost 550,000 550,000 Manufacturing (or factory) overhead Rent (80% of 80,000)Assp. No. 3 64,000 Production Supervisor's salary 35,000 Electricity (Assp. No. 5) 12,000 Manager's salary (80,000 x 1/2 Assp. No. 7) 40,000 Equipment depreciation (25,000x95% Assp. No. 4) 23,750 174,750 Total cost of production 724,750 Colonial Tap Company (CTC) Financial Statements for the month ended Cost ($) Cost ($) Sales 980,000 Less C.O.G. Total cost of production 724,750 Less Material at the end ( 10% of 300,000 Assp. No. 2) (30,000) Less Work in progress (20% of 174,750 Assp. No. 2 ) (34,950) 659,800 Gross Profit 320,200 Non Manufacturing Expenses Administrative Expenses Co uncil Rates 5,000 Rent (80,000 x 15% Assp. No. 3) 12,000 Manager's Salary (80,000x2/3 Assp. No. 7 ) 266,667 Equipment

Multimedia Creative Project Assignment Example | Topics and Well Written Essays - 500 words

Multimedia Creative Project - Assignment Example According to Richard Louv’s ‘The Nature Principle’ he tells of how the  entire  family and whole societies can get happier, smarter and healthier through more encounters with the natural world (Louv 10). In this project, one out of his ten reasons why children and adults need vitamin-N is analyzed. The reason I chose is ‘Nature can reduce depression and improve psychological well-being (5).’ Scientists in Sweden have discovered that joggers who practice in natural green environments feel more reinstated and less angry, anxious, or depressed than individuals who burn the similar amount of calories exercising in a constructed urban setting (Louv 10). The reason I pick this reason is that in my video I experienced what the Louv’s discusses. When I was along the road in between the vegetations I felt restored and breathe fresh air that made cycling very enjoyable. The environment was green and lovely thus a place to reduce depression and improv es psychological health. However, a long the town center it was dull, congested and no fresh air (Louv 10). This is an indication that doing exercise within the town is less enjoyable, cannot reduce depression or improve psychological well-being. Researchers have developed models that can be used to associate human and nature. One of those models is HANDY (Human And Nature DYnamics) (Haila 100). This was originally constructed on the basis of predator-prey framework or model. Here the human population is taken as the predator, while nature, the natural possessions of the adjacent environment, can be seen as the prey, exhausted by humans. In animal frameworks, carrying capability is an upper limit on long-term population. The moment the population exceeds the carrying capacity, phenomenon such as migration or starvation bring the population back off (Haila 100). . However, in the circumstance of human communities, the inhabitants does not