This assignment is worth 25% of your total mark. Submission is due at 11:59pm on Thursday 8 October 2020. In this course, we have focused on developing your understanding of the elements of management accounting, which provides organisations with relevant cost-related information to assist with their planning, controlling and decision-making. You will examine the process of identifying, determining, classifying, analysing and allocating costs to products and services. This assignment gives you the opportunity to demonstrate and apply your understanding of product design and costing in a practical manner. We have acknowledged that the global business environment has been more competitive than ever before, especially in the rapid advancement of information technology and the unprecedented level of globalisation and financial market integration. To survive and prosper in such rapidly changing world, businesses must keep up the capacity to innovate products and services, and to manage resources effectively and efficiently This assignment requires you to develop and design a product (not service) of your choice. It might be an existing product with your take on it with necessary improvement or a new product that does not exist in the market. You need to undertake R&D to determine the design, characteristics and functions of your product, calculate its upstream cost, and provide an explanation as to why you want to produce this product. Then, you need to identify and determine your product's production and downstream costs for 40,000 units manufactured. Finally, you need to determine the price of your product and how it will be marketed. Please confirm your product with your lecturer by the end of week 7. Required: 1. Design your product and provide it a name and a description and visual/picture of it (this can be your own drawing or an image from the internet with your brand/logo assigned to the image). Justify your choice by explaining in details the reasons why you selected your product (i.e. is there a demand for it? will it solve any social, environmental or financial issues? etc.). What is your vision for the selected product? 2. Estimate the products Research and Development (R&D) and Design costs (as you will be undertaking the R&D, building a prototype, testing the product. You should assign yourself an hourly wage rate based on market research and keep a record of the activities and how many hours it took you to design your product. This will determine your R&D and Design costs). Page 2 of 3 Provide detailed explanations about your R&D processes/steps and how product is manufactured. 3. Conduct a market research (i.e. search the internet, field research) to identify, estimate and determine the costs of your product's direct materials, direct labour and manufacturing overhead (fixed and variable). Clearly list and determine how much and types of materials, labour and other manufacturing resources will be required to produce one unit of your product and calculate your products cost per unit. Explain the approach used to calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads. 4. Over the period of one month, lets suppose that the cost of your beginning inventory was $5,000 and ending inventory equalled $5,000, and you purchased materials to produce 40,000 units of your product. Calculate the cost of direct materials purchased and used in production during the month. 5. Over the same month, the cost of your beginning work in process was $40,000, and ending was $40,000. Calculate the cost of goods manufactured using a cost of goods manufactured statement/schedule (for 40,000 units of your product) during the month. 6. Over the same month, the cost of your beginning finished goods was $40,000 and ending finished goods equalled $40,000. Prepare a cost of goods sold statement for the month for 30,000 units produced and sold to customers. 7. Determine the price of your product per unit and explain in detail how you determined the price (i.e. cost base used, the pricing method). 8. Conduct a market research to identify and estimate your downstream activities and the related costs (i.e. marketing, packaging, handling, storing, distribution and so forth). Explain how you will market and distribute your product in detail. 9. Prepare an income statement (using absorption costing) for the month given that 50,000 units were sold. Your administrative expenses during the month totalled $3,000, and the Australian company tax rate is 30%. Include all other relevant expenses for the month. Please note the following: Required format: Report (word limit: 1,000 words, excluding references and tables) Submission document: using Word or Pdf Standard layout: The first page of your report should be a cover page with the subject code, your name and student ID number and the name of your product. The second page should be a table of contents. The body of the report will include the requirements above (1-9) and each requirement needs to be clearly numbered. The last page should include your reference list in alphabetical order. You need to include references for the resources you used and referred to as part of your market research to determine your products costs, price etc. The report needs to be page-numbered and presented in a professional and well-formatted manner. Please ensure to Page 3 of 3 provide full and correct statement headings with month and year for the cost of goods manufactured statement, cost of goods sold statement and income statement.