Sydney Ltd, commenced retail operations on 1 July 2019

Sydney Ltd, commenced retail operations on 1 July 2019 by issuing 1,000,000 shares at @ $1.00 per share, payable in full on application. Company sales designer’s leather bags to customers. There were no share issue costs. For the year ending 30 June 2021, the company recorded the following balances: Sales revenue $1,350,000 (Sales price: $1,500 each bag) Gain from trading securities $20,000 Cost of sales: need to be calculated (Cost: $1,000 each bag) Wages and salaries (administrative) $80,000 Wages and salaries (selling) $100,000 Office Rent $20,000 Advertising and distribution expense $10,000 Utility bills $4,000 Sales commission expense (sales employee) $28,000 Bad debt expense $8,000 Depreciation expense – Furniture? (need to be calculated) Depreciation expense – Building? (need to be calculated) Interest…

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Green Tea’s data show the following information for the financial year

Green Tea’s data show the following information for the financial year, beginning July 2020:   July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24   New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery.   Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is…

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Smarty Inc. Ltd produces two different products with the following monthly data

Smarty Inc. Ltd produces two different products with the following monthly data:   P1 P2 Total Selling price per unit $100 $12 Variable cost per unit $ 60 $ 3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $750,000   Assume the sales mix remains the same at all levels of sales.   Required: a) Calculate the weighted average contribution margin per unit. b) How many units in total must be sold to break even? c) How many units of each product must be sold to break even? d) How many units of each product must be sold to earn a monthly profit of $100,000? e) Prepare a contribution margin income statement for…

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Takulah Co. Ltd has traditionally allocated its overhead

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

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

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

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

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

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…

Jim’s Legal services business performed services

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:

1. Was the revenue earned in June or July?
2. Which financial statement assumption does this relate to?
3. What are the differences between the cash basis of accounting and the accrual basis of accounting?

BAO2000 Accounting Information – MYOB

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

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:…