Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:
Required:
i) How much overhead would be allocated to each unit under the traditional allocation method?
ii) How much overhead would be allocated to each unit under activity-based costing?
iii) Would you recommend a change to ABC costing for this company? Justify your answer
Job cost sheets show the following information:
Required:
a) Which job(s) are still in process at the end of January, and what is the cost of this job(s)?
b) Which job(s) were completed at the end of February, and what is the cost of this completed job(s)?
c) What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for March?
AFGAN Ltd owns all of the shares of BLINDA Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. AFGAN Ltd sold inventory to BLINDA Ltd on 1 September 2018 for $27 000. This inventory had cost AFGAN Ltd $18 000. One-third of the inventory was sold by BLINDA Ltd to Goanna Ltd for $13 000 and one-third to Galah Ltd for $13 200. AFGAN Ltd manufactures certain items which it then markets through BLINDA Ltd. During the current period, AFGAN Ltd sold items for $18 000 to BLINDA Ltd…
The following financial statements of EMU Ltd and its subsidiary Cassowary Ltd have been extracted from their financial records at 30 June 2019. EMU Ltd ($) Cassowary Ltd ($) Detailed reconciliation of opening and closing retained earnings Sales revenue 1 725 000 1 450 000 Cost of goods sold (1 160 000) (595 000) Gross profit 565 000 855 000 Dividend revenue—from Cassowary Ltd 186 000 Management fee revenue 66 250 Profit on sale of plant 87 500 Expenses: Administrative expenses (77 000) (96 750) Depreciation (61 250) (142 000) Management fee expense (66 250) Other expenses (252 750) (192 500) Profit before tax 513 750 357 500 Tax expense 153 750…
Baskota Ltd. produces a moulded plastic casing MP356 for desktops. Summary data for 2020 income statement are as follows: Revenue $5 000 000 Variable costs 3 000 000 Fixed costs 2 160 000 Operating profit $(160 000) James Woodruff, CEO, is very concerned about the company’s poor profitability. He asks Matt Vogue, production manager, and Laila Homes, management accountant, to see if there are ways to reduce costs. After two weeks, Matt returns with a proposal to reduce variable costs to 52% of revenues by reducing the costs the company currently incurs for safe disposal of wasted plastics. Laila is concerned that this would expose the company to potential environmental liabilities. She tells Matt: “We would need to…
Lolly Pops Inc. makes really big lollypops in two sizes, large & giant. The company sells lollipops to convenience stores, fairs, schools for fund raising and in bulk on the internet. Summer is approaching & the company is preparing its budget for the month of December. The lollypops are handmade, mostly out of sugar and attached to wooden sticks. Expected sales are based on past experience. Other information for the month of December follows: Input prices: Direct materials Sugar $0.50 per kg Sticks $0.30 each Direct manufacturing labour $8 per direct manufacturing labour hour Input quantities per unit of output: Large Giant Direct material Sugar 0.25 kg 0.5 kg Sticks 1 1 Direct…
During the month of June 2019, Jim’s Legal services business performed services for a specific customer for which the fee was $3,000. The payment was received in the following month of July.
Required:
BAO2000 Accounting Information MYOB Assignment (Individual) Semester 2 2021 ASSUME IT IS NOW 1 September 2021. You are a newly appointed Accountant with “Valentines Furniture Pty Ltd”, a retail business who supplies high quality Italian furniture with a store that operates in Melbourne CBD. The owner of “Valentines Furniture Pty Ltd” is Mr Giuseppe Fanuli who has decided to employ you to help his store convert from its current manual accounting system to a new computerised accounting system using MYOB Accounting Right Standard AU 2019.4.0 or any other MYOB version. Now that you are employed as an accountant for the store, your first task will be to set up the MYOB company file by following the detailed requests of Mr Fanuli. After completing the setup process, your next task will be to…
Snap Ltd is a seafood business with headquarters in Apollo Bay. Snap Ltd products include many varieties of seafood but one item lacking in its product range is Tasmanian Atlantic Salmon. The board of Snap Ltd decided to investigate a takeover of a Tasmanian company, Southern Pty Ltd, whose major product is the packaging of Tasmanian Atlantic Salmon. Strategically, Southern Pty Ltd would be a good fit with Snap Ltd as Snap owns two processing factories in Devonport, one of which is under-utilised. If Southern were acquired, then Snap would liquidate the company and transfer all the processing work to one of the Devonport factories. The financial statements of Southern Pty Ltd at 1 September 2019 showed the following information:…
On 1 July 2016, Cena Ltd acquired 80% of the shares of Lesnar Ltd for $40 000. The following balances appeared in the records of Lesnar Ltd at this date: Share Capital $20 000 General Reserve 2 000 Retained Earnings 10 000 At 1 July 2016, all the identifiable assets and liabilities of Lesnar Ltd were recorded at fair value except for the following: Carrying amount Fair value Machinery (cost $36 000) $30 000 $40 000 Inventory 16 000 20 000 Receivables 20 000 18 000 The machinery, which had a remaining useful life of 5 years, was adjusted to fair value after the acquisition date in the consolidation worksheet. The machinery was sold by Lesnar Ltd on 1…
Question You have $50,000 saving and are considering a 30-year investment which is offered in two phases: Phase 1: Investing that $50,000 as a lump sum in an investment in the securities market for 20 years. Your securities broker recommends two alternative options: Option A pays interest rate of 11.87%, compounding daily. Option B pays interest rate of 12%, compounding quarterly. Phase 2: At the end of 20 years, putting the total amount accumulated in the first phase into another investment, which will pay you an equal income at the end of each year for 10 years. Required: a) Identify which option should you choose in Phase 1 by computing the effective annual interest rate (EAR)? …
Question You are an experienced investor in the securities market and you have established an investment portfolio of two blue chips five years ago: Diamond shares with current market value of $235,000 and Platinum shares with current market value of $355,000. Required: a) If your portfolio has provided you with returns of 10.5%, 12.6%, – 11.5%, 14.5% and 15.2% over the past five years, respectively. Calculate geometric average return of the portfolio for this period. b) Assume that data in the table below is available for your portfolio performance, calculate the expected return, variance and standard deviation of the portfolio? Diamond Platinum Expected return 16.5% 23.5% Standard Deviation of return 7% 11% Correlation of coefficient (p) 0.45 c)…