Newcastle Machining produces parts for the steel industry

Newcastle Machining produces parts for the steel industry. It has 3 categories of overhead costs: machine operating costs, engineering and inspecting costs. The costs expected for these categories for the coming year are as follows: Machining $440,000 Engineering 220,000 Inspecting 180,000 Total 840,000 The plant currently uses machine hours to apply overhead. Expected capacity is 100,000 machine hours. Tom, the plant manager, has been asked to submit a bid on a potential job. He provides you with the following data for this job:   Direct materials $8,000 Direct labour $12,000 Overhead $? Number of inspections 1 Number of machine hours 2,000 Engineering hours 10   Tom has been told that other firms will be competing for this job as well. Most…

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Voltus Communications, a manufacturer of communications equipment

Voltus Communications, a manufacturer of communications equipment, uses a job costing system. Manufacturing overhead is applied based on machine hours and it uses a predetermined overhead rate with budgeted overhead of $3,600,000 for the year and 80,000 machine hours. Voltus uses a financial year of 1 July 2018 to 30 June 2019 and all the activities for the year have been carried out. Summarised details for period 1 July 2018 to 31 May 2019 and for June 2019 follow. Jobs B12- 008,K12-009 and K12-011 were completed during June 2019 .All completed jobs except K12-009 have been sold by 30 June 2019. Jobs in process at 31 May 2019 Job numbers Balance at 31 May 2019 B12-008 $263,000 K12-009 163,000 K12-011 0…

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Comfort Furniture Pty Ltd manufactures and distributes

Comfort Furniture Pty Ltd manufactures and distributes stylish and practical furniture for hospitality industry in Australia. The company’s balance sheet at December 31, 2016 is shown below:   Comfort Furniture Balance Sheet December 31, 2016   Assets     Current Assets     Cash   $7,500 Accounts receivable   $73,500 Finished goods inventory (1500 units)   $24,000 Total current assets   $105,000 Property, plant and equipment     Equipment $40,000   Less: Accumulated depreciation $10,000 $30,000 Total Assets:   $135,000       Liabilities     Notes payable   $25,000 Accounts payable   $45,000 Total Liabilities   $70,000       Stockholders’ Equity     Common stock $40,000   Retained earnings $25,000   Total stockholders’ equity   $65,000 Total liabilities and…

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Garden Enterprises has the following business transaction estimates

Business Analysis and Interpretation  Garden Enterprises has the following business transaction estimates relating to the final quarter of 2019.       $ ​​     $ ​​      $  ​​​​              OCTOBER           NOVEMBER       DECEMBER   Credit Sales     255600​               296200​               240000​​ Cash Sales​​​​   45000​     ​   47500​​   49000​​ Receipts from Accounts Receivable `1.​calculate​calculate​ calculate Wages​​​​                  50000                 50000                   70000​ Office Furniture​​​​   16050                 18950                           0 Prepayments             0        …

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ACC3003 Financial Accounting and Reporting – Myer Ltd acquired all the issued shares of Thompson Ltd

Myer Ltd acquired all the issued shares of Thompson Ltd on 1 July 2018 for $200 000. At this date Thompson Ltd recorded a dividend payable of $25 000 and equity of: Share capital                                    $ 54 000 Retained earnings                              36 000 Asset revaluation surplus                    18 000   All the identifiable assets and liabilities of Thompson Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount                     Fair value Inventory                                             $ 10 000                                  $ 12 000 Machinery (cost $100 000)                      80 000                                    85 000   The machinery was considered to have a further 5-year life. Of…

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Grace Ltd is finalising its financial statements

Question 1   Events after the reporting period   Grace Ltd is finalising its financial statements for the reporting period ending 30 June 2019.  On 29 August 2019, before the financial statements have been finalised and authorised for issue, the company’s directors became aware of the following situations: Grace Ltd’s cloud service provider breached its contract, when the service was down for 14 days in July 2019, causing major disruptions to Grace Ltd’s business operations.  Grace Ltd commenced legal action against the cloud service provider on 2 August 2019, seeking $300,000 in damages for lost profits. On 5 August 2019, the government announced a new airport for Western Sydney.  The flight path for plane’s landing and taking off is directly above…

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ACC515 – GOGreen Motors is considering a new project to produce electric vehicles

Capital Budgeting Background: (EV) GOGreen Motors is considering a new project to produce electric vehicles for the Australian domestic market and international markets. The potential growth in this market has been outlined in a report by Climateworks, which you can view by CLICKING HERE. (https://www.climateworksaustralia.org/sites/default/files/documents/publications/ climateworks_australia_state_of_electric_vehicles2_june_2018.pdf) GOGreen has identified a property/plant that was formerly used to build petrol fueled motor vehicles that could be refitted at minimal cost to manufacture the new EV’s. GOGreen is targeting Australian metrolpolitan centres for initial sales and expanding into regional centres over the next five years.         International demand for EV’s is being driven by China and GOGreen has been in negotiation to provide vehicles to the Chinese market in 2020. Problem: GOGreen has made the…

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FIN700 – Financial Management – In August 2019 Coral Ltd reported net profits after tax

QUESTION 1 In August 2019 Coral Ltd reported net profits after tax of $600,000 for its financial year 2018 -– 19 and announced its net profits after tax expectation for the next financial year, 2019 – 20, to be 25% higher than this year’s figure. The company operates with a dividend payout ratio of 70%, which it plans to continue. It will pay the annual dividend for 2018 – 19 in 1 October, 2019, and the dividend for 2019 – 20 in 1 October, 2020. Dan Brown owns 12% of the ordinary share capital of Coral Ltd. In October, 2020, Dan believes he will need $30,000 for consumption and he also wishes to pay off his home loan of $70,000.  If…

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ATMC ACC506 Task 2 – Mr White is the sole proprietor of White Washers

1. Business Model and Accounting System   1.1 Business Model Introduction Mr White is the sole proprietor of White Washers – a GST-registered retail business that sells washing machines and dryers. It is a continuing business with opening balances in its permanent accounts. The business purchases and sells inventory. It also has some other income from rent received from leasing out part of its building. The business uses MS Excel spreadsheeting software to record transactions, manage accounts and prepare the financial statements.      1.2 Accounting policies Being GST registered, pays GST on sales and services to the Australian Government. The business uses a GST paid (Asset account) and GST collected (Liability account) to record its GST. Unless otherwise stated, assume…

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MAA 363 Corporate Accounting – Finn Ltd

PART A The profit before tax, as reported in the statement of comprehensive income of Finn Ltd (an Australian technology company) for the year ended 30 June 2019 amounted to: $9,820,000 including the following revenue and expense items: Rent Revenue $306,000 Windfall Gain $552,000 Doubtful debts expense $61,000 Depreciation (Equipment) $398,900 Depreciation (Buildings) $98,000 Sick leave expense $276,000 Annual leave expense $184,000 Insurance expense $92,000 Fines expense $153,400 The draft statements of financial position of the company at 30 June 2019 and 2018 showed the following assets and liabilities: 2019 ($) 2018 ($) Assets Cash $644,000 $705,000 Inventory $1,380,000 $1,258,000 Accounts receivable $3,989,000 $3,805,000 Allowance for doubtful debts -$319,000 -$294,000 Prepaid insurance $171,000 $159,000 Equipment $3,989,000 $3,989,000 Accumulated depreciation – Equipment…

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ACST201 – Today is 1 January 2019. MQU bank is offering a y year $1,500,000 loan product

Throughout this assessment you will need to consider y years. To calculate y, you will use your student ID number. Let r be the integer remainder after dividing your student ID number by 25. Let y = r + 20. For example, if the ID number is 12345678, then 12345678 = 493827×25+3, r = 3 and y = 23. You should use this value for y throughout the assessment. Today is 1 January 2019. MQU bank is offering a y year $1,500,000 loan product from the beginning of 2019 to its customers. a. This loan product requires customers to make monthly repayments. Payments will be made at the beginning of each month with an amount of $9,000. Use the Goal Seek…

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Your daughter has expressed a wish to attend university

Question 1 (a)  Your daughter has expressed a wish to attend university when she finishes school in five (5) years.  You anticipate the cost will be $60,000 at the time she commences university.  If your financial institution is offering you 4% pa (compounded monthly), how much do you need to deposit in your account each month in order to save the required amount before your daughter commences university? (b) You have been offered the opportunity to purchase a start up company building electric cars for the Australian market called Green Motors P/L.  Your initial investment is $22,000,000. The term of the project is 5 years. The project has an expected rate of return of 10% pa.  All expected cash flows for…

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