ACOF 014 - Introduction to Costing

Semester 2 2008/ 2009

ASSIGNMENT FOR COSTING

PURPOSE:

The purpose of this project is to have students, working in groups, demonstrate their
ability to develop a comprehensive interactive and dynamic costing model using current
spread sheet technology.

The Groups:

Each group will consist of 5 members. Cross-section groups are allowed as long as
members are instructed by the same lecturer/ tutor. Please submit your group name by
14 November 2008.

The Model:

Each group will set up a company and creates a product with comprehensive costing
problem and provide solution for it. The problem will consist of a group of cost
elements used in producing the merchandise.

The cost elements should consist of:

i- Direct Material: Create a template that can be used to calculate cost of

materials. Students can choose either to use LIFO, FIFO, or Weighted Average
method.
ii- Direct Labor: Create a template that can be used to calculate direct labor cost
using only one payment system (e.g. basic pay or piecework)
iii- Overhead: Create a template that can be used to allocate the overhead used
to each department followed by calculation of overhead absorption rate (OAR).

Once the template has been set, create a situation in which all the templates can be
applied. At the end of the situation, students should be able to come out with a total cost
of chosen product and determine the selling price for that product.

Marks will be determined based on creativity of students in coming out with a realistic
situation.

What to Hand In:

The project has to look professional and be professionally bound. The paper must include
a title page, a table of contents, an introductory page or two (describing the fictitious
company and your product), and lastly the costing problem the company is facing
together with the possible solutions. The template (using Excel) prepared (with a sample
of product calculation) should be submitted before or on the date of the submission
through email to the respective instructors/ tutors assigned to you. The file must be in
Excel format, in the version supported by UNITEN, and virus free. Keep a back-up copy of
your printed project and file.
Submission Date:

2 January 2009 (Before 5 pm)