The following company provides a single product and have provided their summary

The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.

Selling price per unit	$55
Variable manufacturing costs	$23
Annual fixed manufacturing costs	$450000
Variable, marketing, distribution and administration costs	$9
Annual fixed non-manufacturing costs	$229000
Annual volume	50000

 

1. Calculate the contribution margin per unit.
2. Calculate the contribution margin ratio.
3. Calculate the break-even in units and sales dollars for 2020.
4. Calculate the profit earned in 2020.

Hudson Books, an online book retailer, has two operating departments

Hudson Books, an online book retailer, has two operating departments – corporate sales and consumer sales – and two support departments – human resources and information systems.  Each sales department conducts merchandising and marketing operations independently. Hudson Books uses number of employees to allocate human resources costs and processing time to allocate information systems costs.  The following data are available for September 2019.   Support Departments Operating Departments Human Resources Information Systems Corporate Sales Consumer Sales Budgeted costs incurred before any inter department cost allocations $72,700 $234,000 $998,270 $489,860 Support work supplied by human resources department Budgeted number of employees – 21 42 28 Support work supplied by information systems department Budgeted processing time (in minutes) 320 – 1,920 1,600  …

Khadka Manufacturing manufactures work benches for local

Khadka Manufacturing manufactures work benches for local and domestic markets. Materials and labour used in the manufacturing process are directly allocated to different jobs as the company uses a job costing system.  Costs incurred in the manufacturing support department are indirect in nature and allocated to different jobs on the basis of direct labor-hours. Khadka estimates 2019 manufacturing-support costs to be $1,700,000 and 2019 direct labor-hours to be 50,000. At the end of 2019, Khadka collects the cost-related data of different jobs that were started and completed in 2019 for comparison. They are as follows: Iron benches Wooden benches Production period Jan-May 2019 May-Sept 2019 Direct material costs $39,145 $47,325 Direct labour costs $12,723 $16,376 Direct labour-hours 420 480   Direct…

Your local hotel has a dining room which has the capacity to seat 140 guests

Your local hotel has a dining room which has the capacity to seat 140 guests.  It is opened for breakfast and lunch seven days a week and fully expects to be at capacity at these times.  During January 2021, management has forecast the seat turnover for breakfast will be 3 times and for lunch 2 times, with the average bill to be $28 for breakfast and $58 for lunch.  Beverage revenue is usually 12 per cent of the breakfast revenue and 28 per cent of the lunch revenue.

 

Calculate budgeted total revenue of food and beverage for the 31 days of January 2021. Express your answer as a daily food and beverage outcome and also a monthly figure.

Green Ltd purchased 80 per cent of the issued capital for consideration

Green Ltd purchased 80 per cent of the issued capital for consideration of $4 000 000 and in the process gained control over Maroon Ltd on 1 July 2015. The fair value of the net assets of Maroon Ltd at purchase was represented by:

 

Share capital              $3 220 000

Retained earnings       740 000

Total                           3 960 000

 

At acquisition date all the identifiable assets and liabilities of Maroon Ltd were recorded at amounts equal to fair value.

At 1 July 2015, the fair value of the non-controlling interest was $1 000 000 and Green Ltd adopts the full goodwill method.

 

Required: Prepare acquisition analysis on 1 July 2015.

Johnson Ltd recorded a profit before tax of $50 000

Johnson Ltd recorded a profit before tax of $50 000 for the year to 30 June 2017, which included the following items:

Depreciation expense – plant Doubtful debts expense Long-service leave expense

$5 000 1 500 3 000

For taxation purposes the following amounts are allowable deductions for the year to 30 June 2017:

Tax depreciation – plant Bad debts written off

$5 500 1 000

Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies.

Required:

1. Calculate current tax liabilities for the year ending 30 June 2017 and prepare journal entries for current tax liabilities.
2. Calculate deferred tax liabilities for the year ending 30 June 2017 and prepare journal entries for deferred tax.

Sunflower Ltd purchased 100% of the issued capital

Sunflower Ltd purchased 100% of the issued capital of Rose Ltd for a cash consideration of $1.7 million on 1 July 2019. At that time the fair value of the net assets of Rose Ltd were represented by: Share capital $1,000,000 Retained earnings $500,000 $1,500,000 Goodwill had been determined to have been impaired by $20 000 during the period. During the period ended 30 June 2020, Rose Ltd sold inventory that cost $450 000 for $620 000 to Sunflower Ltd. Twenty per cent of this inventory remains on hand in Sunflower Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30%. At the end of the period Rose Ltd declared a dividend…

ACCG8121 Excel Assessment – Quantum Robotics are a manufacturing company

Scenario Quantum Robotics are a manufacturing company who supply custom made robotic components.  You are required to provide a spreadsheet that will help cost individual jobs, provide a summary of completed jobs for the year and help manage inventory. Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the Excel file it is very important that you Enable Macros and Content. You will then be asked to enter your Student Number (you will not be able to edit it afterwards, so type it in carefully) and then enter your Student Name. Please note the first three worksheets are locked, and you will only be able to change the cells specified.   General…

On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital

On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360000.At the date of acquisition, the shareholders’ equity of Jamuna Ltd is:   Share capital $450,000 Retained earnings $300,000 Total shareholders’ equity 750000   Additional information On the date of acquisition, buildings have a carrying amount in the accounts of Jamuna Ltd of $240000 and a market value of $300000. The buildings have an estimated useful life of 10 years after 1 July 2014. For the year ending 30 June 2015 Jamuna Ltd records an after-tax profit of $90000, from which it pays a dividend of $30000. For the year ending 30 June 2016 Jamuna Ltd records an after-tax…

Apple Ltd acquired 100% of the issued shares of Orange Ltd

Apple Ltd acquired 100% of the issued shares of Orange Ltd, for $290,000 paid in cash.  At the date of acquisition, 1 July 2018, the reported shareholder’s equity of Orange Ltd was: Ordinary shares                                              $180,000 Retained earnings                                          $120,000 $300,000 The Apple Group adopted the cost model to measure property, plant and equipment and identifiable intangible assets.  The carrying amounts and fair values of the recorded assets and liabilities of Orange Ltd at 1 July 2018 were as shown below:     Carrying amount Fair value Assets     Cash at bank $25,000 $25,000 Trade debtors $26,000 $26,000 Inventories $40,000 $45,000 Equipment $1,620,000 $1,350,000 Less Accumulated depreciation -$450,000   Land $50,000 $64,000 Less Liabilities…

The following information relates to Moon Light Ltd

Question The following information relates to Moon Light Ltd. (a) At the beginning of the accounting period the company has a salary payable liability of $200 and at the reporting date a salary payable of $360. During the year the salary expense shown in the income statement was $400. (b) At the beginning of the accounting period the company has property, plant and equipment (PPE) with a carrying amount of $400. At the end of the accounting period, the carrying amount of the PPE is $1,200. During the year depreciation charged was $80, a revaluation surplus of $240 was recorded and PPE with a carrying amount of $60 was sold for $80. (c) At the beginning of the accounting period the company has retained earnings of $2,000 and…

Nevertire Ltd and Sunglow Solar Ltd

Question 1 Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the second year using each of the following depreciation methods straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 50,000 kilometers in the first year and 78,000 kilometres during the second financial year). Record the adjusting entries for the depreciation at the end of the second financial year using straight-line method. Show how…