Melody Musical Pty Ltd manufactures brass musical instruments for use in Primary andSecondary Schools across Victoria. The company uses a job costing system in whichmanufacturing overhead is applied based on direct labour hours. The company's budget forthecurrent yearincluded the followingprediction.

Budgetedtotalmanufacturingoverhead	$426,300
Budgetedtotaldirectlabour hours	20,300

DuringMarch, thefirm began twoproductionjobs:

• JobnumberT81, consistingof76 trombones.
• Job number C40, consisting of 110 cornets.Theeventsof Marcharedescribedasfollows:

1,000 square metres of rolled brass sheet metal were purchased on credit for $5,000.400kilograms of brass tubing werepurchased on credit for $4,000.

Thefollowingrequisitionswerefilledon5 March:

• Requisition number 112: 250 square meters of brass sheet metal @ $5.00 per squaremeter(For job numberT81)
• Requisition number 113: 1,000 kilograms of bras tubing @ $10 per kilogram (for jobnumberC40)
• Requisitionnumber114:10 litres ofvalve lubricant @$10.00 litre
• All brass used in production is treated as direct material. Valve lubricant is an indirectmaterial.

AnAnalysisof labourtime sheetsrevealed the following labour sageforMarch.

• Directlabour: Jobnumber T81,800 hours@$20 perhour
• Directlabour:JobnumberC40, 900hours@$20perhour
• IndirectLabour:general factoryclean-up,$4,000
• Indirectlabour: factorysupervisorysalaries,$9,000
  1. Executive summary (5 Marks): The one-page executivesummaryshouldofferaconciseoverviewofthe criticalissuesoutlinedinthecasestudy and provide a brief background context. Additionally, it must include asummaryofthekeyfindings derived from your analysis.

Depreciation of the factory building and equipment during March amounted to $12,000.Rentpaid in cash forwarehousespaceused duringMarch was $1,200.

Electricity costs incurred during March amounted to $2,100. The invoices for these costswerereceived, but the billswerenot paid in March.

Marchcouncilrates andpropertytaxeson the factorywerepaid incash,$2,400.

TheinsurancecostcoveringfactoryoperationsforMarchwas$3,100.The insurancepolicyhadbeen prepaid in February.

Costsofsalariesandon-costsforsalesandadministrativepersonnelpaidincashduringMarchamounted to $8,000.

Depreciationonadministrativeofficeequipmentandspaceamountedto$4,000.

Other selling and administrative expenses paid in cash during March amounted to $1,000.Jobnumber T81 was completed inMarch.

Half (50%) the trombones in job number T81 were sold on credit during March for $700each.

The1stofMarchbalances in selectedaccountsareas follows:

Cash	$10,000
Accountsreceivable	$21,000
PrepaidInsurance	$5,000
Rawmaterialinventory	$149,000
ManufacturingsuppliesInventory	$500
Workin process inventory	$91,000
Finishedgoodsinventory	$220,000
Accumulated depreciation: Building andequipment	$102,000
Accountspayable	$13,000
Wagespayable	$8,000

Required:

1. Management Accounting Reports (10 Marks): Provide theCost of goods manufactured (COGM), Cost of Goods Sold (COGS) and IncomeStatement (I/S). Be sure to show all calculations for each of these reports. Accuracyin your calculations will be crucial for scoring well in this section. Present the data ina clear and organised manner to enhance the readability of your reports. In the report,please includethe following information:

*DetailsofT81jobcostingincludingajobcostsheet,costdetailsandcostsummary

*Preparejournal entriesto recordall cost items andprepare ledgeraccounts

*Showcalculation ofactual manufacturingoverhead

*Show the COGM, COGS and IS.

*Discuss about the efficiency in production process to convert from the rawmaterials into Work-in-progress and finished goods. Is there any warning signalshownin the process?

*Comment on the overapplied/ underapplied manufacturing overhead. Identify theprosand cons of suchoverhead management

*Commentsonthe cashandliquidity managementshownin Marchfinancialreports

*CommentsontheProfitandLossbytheend ofMarch.

1. Recommendation (5 Marks): In the recommendation section,you must provide detailed and justified recommendations based on your case studyanalysis. Your recommendations should be well-reasoned and supported by evidencefromyour findings.