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TACC607NA Managerial Accounting
Q1. Mike Strong founded Australia canoe Pty Ltd and later purchased Top Designs Pty Ltd, a company that designs and Manufactures kayaks. The kayak manufacturing facility is located just a few minutes from the canoe company’s headquarters in North Sydney, New South Wales. Top Design Pty Ltd makes kayaks using two different processes. First, The rotational process uses high temperatures to melt polyethylene powder in a closed rotating metal mould to produce a complete kayak hull and deck in a single piece. These kayaks are less labour- intensive and less expensive to produce and sell. Secondly, Its other kayaks use the vacuum-bagged composite lamination process (which we will refer to as the composite process). Layers of fibreglass are carefully placed by hand in a mould and are bonded with resin. Then, a high-pressure vacuum is used to eliminate any excess resin that would otherwise add weight and reduce the strength of the finished kayak. These kayaks require a great deal of skilled labour as each boat is individually finished. The exquisite finish of the vacuum-bagged composite kayaks gave rise to Top Designs’ tagline, “Work of art, made for life.” Top Designs Pty Ltd has the following Managers : Mike Strong, CEO Diane Smart, Controller Deb Lo, Purchasing Manager Ben Johnson, Sales Manager Dave Philips, Kayak Plant Manager Required (Maximum 500 words for questions A and B) A. Name one special purpose management accounting report designed for each manager. Include the report’s name, the information it would contain and how frequently it should be issued. (5 Marks) B. Explain what are the primary information needs of the company using Job costing and process costing in Australia Canoe Pty Ltd. (5 Marks)
TACC607NA Managerial Accounting
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