2108AFE Financial Accounting Practice Set Assessment – Trimester 2, 2018

2108AFE Financial Accounting Practice Set Assessment – Trimester 2, 2018     Practice Set Assignment and Quiz Students are required to complete the practice set assessment item in their own time and submit the completed files by the due date and time. Students will then complete a 10-question quiz based on information in the practice set. Due Date Practice Set File – 27 August 2018 by 9am. Online Quiz – Available from 27 August at 9am until 31 August 5pm. Where to submit your assessable work The Practice Set File is to be uploaded via the submission point under the Assessment tab in L@G. The Online Quiz will be available under the Assessment tab in L@G. Weighting 20% of your final…

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Implementation and analysis of departmental rates – Robillard Products manufactures its products

Implementation and analysis of departmental rates Robillard Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,070,000. Of this amount, the Machining Department incurs $630,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. The company estimates that it will incur 10,000 machine hours (all in the Machining Department) and 17,000 direct labor hours (3,000 in the Machining Department and 14,000 in the Assembly Department) during the year. Robillard Products currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead…

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Implementation and analysis of departmental rates

Voisine Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,040,000. Of this amount, the Machining Department incurs $600,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. The company estimates it will incur 4,000 machines hours (all in the Machining Department) and 14,500 direct labor hours (2,500 in the Machining Department and 12,000 in the Assembly Department) during the year. Voisine currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department…

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James is evaluating the expected performance of two common stocks

James is evaluating the expected performance of two common stocks, stock A and stock B. he has gathered the following information:

  • The risk-free rate is 5%
  • The expected return on the market portfolio is 11.5%
  • The beta of stock A is 1.5
  • The beta of stock B is 0.8

 

Based on his own analysis, James’ forecast of the returns on the two stocks are 13.25% for stock A and 11.25% for stock B. Calculate the required rate of return for stock A and B. Briefly explain whether each stock is undervalued, overvalued, or fairly valued.

Scotty Thomson expects to receive the following stream

Question 1 (20 marks) This question relates to material covered in the Topics 1 to 3. This question addresses the 5th and 6th subject learning outcomes. For the following numerical problems, detailed answers must be shown. This involves providing a brief description of the problems, formulae used, progressive and final answers to the questions. For assignments you are expected to show your workings using the appropriate formula. (a)   Scotty Thomson expects to receive the following stream of cash flows from an investment over the next 7 years: End of year Cash flow ($) 1 3,000 2 6,500 3 280 4 1,400 5 3,000 6 0 7 10,000   If Scotty’s required rate of return is 6% per annum on this investment, how much…

Manufacturing cost data for Orlando Company

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)   Case A Case B Case C Direct materials used  (a) $93,400 $65,150 Direct labor 56,000 146,100  (h) Manufacturing overhead applied 44,800  (d)  (i) Total manufacturing costs 150,150  (e) 212,750 Work in process 1/1/17  (b) 16,800 18,800 Total cost of work in process 205,900  (f)  (j) Work in process 12/31/17  (c) 15,400  (k) Cost of goods manufactured 194,300…

ACC10707 Session 2, 2018 Assessment – Business Analysis and Interpretation

ACC10707 Session 2, 2018 Assessment 3 Questions Business Analysis and Interpretation   1. A garden supply company has the following business transaction estimates relating to the third quarter of 2018.     $ Credit Sales  160960 Cash Sales 122104 Receipts from Accounts Receivable 97546 Wages 60080 Office Furniture 12109 Prepayments 4722 Administrative Expense 18818 Depreciation on Office Furniture 1454 Depreciation on PPE 35000 Provision for doubtful debts  1454 Receipt of Loan 20000 Credit Purchases 85450 Payments of Accounts Payable  69110 Accrued Wages and other expenses 9854 Prepayments – Other 1597   The cash balance at 1 July 2018 was $106826.   Required Prepare a cash budget for the quarter ending 30 September 2018. (15 Marks). Note that 1 mark will be…

The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit

The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data:   Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor   Debbie 75,000 $28.00 $5.20 $4.80   Trish 67,000 $ 5.70 $2.10 $1.36   Sarah 60,000 $33.50 $10.19 $7.20   Mike 36,000 $18.00 $4.50 $5.60   Sewing kit 350,000 $ 10.50 $5.70 $0.96   The following additional information is available: The company’s plant has a capacity of 164,990 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five…

Woodchuck Timber Pty Ltd grows, harvests and processes

Woodchuck Timber Pty Ltd grows, harvests and processes timber for use in the building industry. The following data relate to the company’s sawmill during June:

 

  $
Work in process, 1 June:  
Direct material 130000
Conversion 360000
Costs incurred during June:  
Direct material 850000
Conversion 1380000

 

The equivalent units for June were as follows:

  $ $
  Weighted average FIFO
Direct material 14000 8500
Conversion 3480 2000

 

a) Calculate the cost per equivalent unit, for both direct material and conversion, during June. Use weighted average process costing.

b) Repeat requirement 1 using the FIFO method.

Lewis Company’s standard labor cost of producing one unit

Lewis Company’s standard labor cost of producing one unit of Product DD is 3.1 hours at the rate of $12.5 per hour. During August, 42,000 hours of labor are incurred at a cost of $12.70 per hour to produce 13,400 units of Product DD.

(A) Compute the total Labor Variance

(B) Compute the labor Price and Quantity Variances

(C) Compute the labor price and quantity variances, assuming the standard is 3.3 hours of direct labor at $12.90 per hour.

FIN700–Financial Management – Trimester 2, 2018 – Version 2

QUESTION `1 [6 + 4 + 6 = 16 Marks.]   a) This is a two period certainty model problem. Assume that Bradley Lane has a sole income from Fisher Ltd in which he owns 12% of the ordinary share capital. Currently, Bradley has no savings. In August, 2018, Fisher Ltd reported net profits after tax of $800,000 for the last financial year, 2017-18 (1 July, 2017 to 30 June, 2018), and announced it expects net profits after tax for the current financial year, 2018-19, to be 20% higher than last financial year’s figure. The company has a dividend payout ratio of 70%, which it plans to continue, and will pay the annual dividend for 2017-18 in late-September, 2018, and the…

Variance-covariance matrix

Instructions: You are given the following data below. Calculate in YELLOW

  1. Calculate mean, variance, standard deviation, covariance, correlation
  2. Create a chart of the mean and standard deviation of combinations of the portfolios.
  3. Add the individual asset returns to the chart—are the two portfolios on the efficient frontier?
  Variance-covariance matrix   Means
  0.40 0.03 -0.04   10%
  0.03 0.50 0.05   15%
  -0.07 0.07 0.70   12%
           
  Portfolio1 Portfolio2      
Asset1 20% 10%      
Asset2 30% 50%      
Asset3 50% 40%