Solved Assignments

The Playdough company currently produces 760,000  playdough canisters

T217 ACC202 MANAGEMENT ACCOUNTING ASSIGNMENT    20% Due Week 10 The Playdough company currently produces 760,000  playdough canisters per year  at its local plant  as it sells the product in canisters.The details of the costs in producing the canisters are : Direct materials                                                                                      $ 300,000 Direct labour  12000 hrs at $15 per hr                                                  180,000 Variable overhead  $10 per direct labour hr                                        120,000 Fixed overhead $45 per direct labour hr                                              540,000 Total cost                                                                                             $ 1,140,000 The Playdough company has received an offer from the Cannister company  to supply the cannisters at $1 per canister .The only fixed overhead that would be avoided  would be $80,000 of supervisors salaries and $28,000 machinery depreciation .The remaining fixed overhead would continue  to be incurred. The Playdough…

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Project Selection and Portfolio Risk

Question 1: (marks 6) 
Your company has 4 projects A, B, C and D. The returns generating by these projects are as follows: .          Project(s) Interest (return) earnings A 11.56% per annum compounding annually B 12% per annum compounding monthly C 5% per semi-annual compounding monthly D 3.26% per quarter compounding annually 
Each of the project has 10 years of life. The initial investment for each of the project is also same $100,000 each. (i)  Your company management has asked you to select only one out of the four projects available, which one would you select? Show your calculation and justification of selection. (ii)  Consider an alternative situation. Your company management has setup a minimum acceptance criteria for any new project…

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Debenture and non-current assets

Question 1 The following questions are unrelated except that they all apply to non-current assets and intangible assets: 1. The manager of Golf Gear often debits the cost of repair or maintenance of equipment to Plant and equipment. Is this a violation of accounting standards and accepted good practice? Why would the manager do that? (4 marks) 2. The manager of Castle Industries often buys plant and equipment and debits the cost to Repairs and maintenance expense. Does this action violates accounting standards and accepted good practice? Why would he do that? (4 marks) 3. Some people suggest that, since many intangible assets have no value except to the business that owns them, e.g. the website, they should be valued at $1.00…

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General Journal, General Ledger, Trial Balance

QUESTION 1: General Journal, General Ledger, Trial Balance (35 marks) Paul is the sole proprietor of Auldana Custom Concrete Foundations (ACCF), a specialist construction company.  The following is a list of transactions that took place during the month of May 2016.     May 1                    The business purchased additional equipment costing $22,400 by increasing the loan with the bank.   May 5                    The construction of a housefoundation was completed and the client was invoiced. The client paid $8,500 in cash and agreed to pay the remaining $33,500 over the following ten months.   May 10                                 Paul withdrew $1,200 cash for personal use.   May 15                                 An Advertising Bill for $1,680 was paid for in cash.   May 17                 Paul hurt his wrist at work and visited his local…

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Hillar Ltd produces a variety of chemicals. One division makes reagents for laboratories

Part A:  Cost-Volume-Profit Analysis                                                                    [10 Marks] Hillar Ltd produces a variety of chemicals. One division makes reagents for laboratories. The division’s projected income statement for the coming year is: Sales (203 000 Units @ $70) $ 14 210 000 Total variable cost      8 120 000 Contribution margin $ 6 090 000 Total fixed cost    4 945 500 Operating income $ 1 144 500 Required:   Compute the contribution margin per unit and calculate the break-even point in units. Calculate the contribution margin ratio and the break-even sales revenue.      [2 Marks] The divisional manager has decided to increase the advertising budget by $250 000. This will increase sales revenues by $1 million. By how much will operating income increase…

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Okinawa Company uses job-order costing

Okinawa Company uses job-order costing. They worked on three jobs in July. Data are as follows:   Job 2106 $ Job 2107 $ Job 2108 Direct materials $10 450 $12 300 $16 150 Direct labour $16 000 $12 200 $24 000 Machine hours 500 300 1 000 Balance, 1 July $21 310 $6 250 $0   Overhead is applied to jobs at the rate of $16 per machine hour. By 31 July, Jobs 2106 and 2108 were completed. Jobs 2102 and 2106 were sold. Job 2107 remained n process. On 1 July, the balance in Finished Goods was $49 000 (consisting of Job 2102 for $25 600 and Job 2104 for $23 400). Okinawa prices its jobs at cost plus 30%.…

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Consolidation: Principles, accounting requirements and intra-group transactions

Question 1 [100 marks]  Topics 1 & 2: Consolidation: Principles, accounting requirements and intra-group transactions   On 1 July 2015, Peace Ltd acquired all the shares of Sublime Ltd. At this date, the equity and liability sections of Sublime Ltd’s statement of financial position comprised of the following items:   $ Share capital (30 000 shares) 30 000 Retained earnings 10 500 General reserve 15 000 Other reserves 3 000   At acquisition date, all the identifiable assets and liabilities of Sublime Ltd were recorded at amounts equal to fair value except for:   Carrying amount Fair value $ $ Inventory 25 000 28 000 Equipment (cost $15 000) 12 000 16 000 Machinery (cost $8 500) 7 500 8 000 Land 9 240 12 240   The inventory on hand…

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Budgeting – Vermillion Chemical Company manufactures a red industrial dye

BACC216 Management Accounting 2 Semester 2, 2017 Assignment – Part 1 Vermillion Chemical Company Vermillion Chemical Company manufactures a red industrial dye. The Vermillion Chemical Company is in the process of preparing its 2018 master budget and you (a group of two trainee management accountants) are presented with the following information in mid-August 2017: 1. The December 31, 2017, projected balance sheet for the company is shown below:   Vermillion Chemical Company Projected Balance Sheet As at 31 December 2017 ASSETS LIABILITIES AND SHAREHOLDERS’ EQUITY Cash 5,080 Notes payable 25,000 Accounts receivable 26,500 Accounts payable 2,148 Raw materials inventory 800 Dividends payable 10,000 Finished goods inventory 2,104 Total liabilities 37,148 Prepaid insurance 1,200 Shareholders’ funds Building 300,000 Paid in capital 150,000 Accumulated depreciation…

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World Gourmet Coffee Company (WGCC) is a distributor and processor of different blends of coffee

World Gourmet Coffee Company (WGCC) is a distributor and processor of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. WGCC currently has 15 different coffees that it offers to gourmet shops in one-pound bags. The major cost is raw materials; however, there is a substantial amount of manufacturing overhead in the predominantly automated roasting and packing process. The company uses relatively little direct labor. Some of the coffees are very popular and sell in large volumes, while a few of the newer blends have very low volumes. WGCC prices its coffee at full product cost, including allocated overhead, plus a markup of 30 percent. If prices for certain coffees are significantly higher than…

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Financial Management – Annuity

Question 1 This question relates to material covered in the Topic 3 on Financial Mathematics. This question addresses the 6th subject learning outcome. A couple wants to accumulate $10,000 by making payments of $800 at the end of each half year into a savings account that earns interest of 10% per annum. Find the number of full payments required and the size of the concluding payment. A woman wins $200,000 in a lottery. She takes only $20,000 in cash and invests the balance at a rate of interest of 10% with the understanding that she will receive 180 equal monthly payments, with the first one to be made in 4 years. Find the size of the payments. Dr.Ritz has been depositing $4,000…

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Lease accounting-Annabel Ltd leased a portable sound recording studio from Lessor Ltd.

Annabel Ltd leased a portable sound recording studio from Lessor Ltd. Lessor has no material initial direct cots. Annabel does not plan to acquire the portable studio at the end of the lease because it expects that, by then, it will need a larger studio. The terms of the lease are as follows: ·      Date of entering lease: 1 July 2019 ·      Duration of lease: four years ·      Life of leased asset: five years ·      Lease payments: $50 000 at the beginning of each year ·      First lease payment: 1 July 2019 ·      Lease expires: 1 July 2023 ·      Interest rate implicit in the lease: 8 per cent ·      Guaranteed residual value expected to be paid: $40 000. Required: (a) Determine the fair value of the portable sound recording…

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Lease Accounting

Hopeful limited leased a portable sound recording studio from Lessor Limited. Lessor Limited has no material initial direct costs. Hopeful Limited does not plan to acquire the portable studio at the end of the lease because it expects that, by then, it will ne//ed a larger studio. The terms of the lease are as follows: – Date of entering lease: 1 July 2011 – Duration of lease: 4 years – Life of leased asset: 5 years – Lease payments: $50,000 at the beginning of each financial year – First lease payment: 1 July 2011 – Lease expires: 1 July 2015 – Interest rate implicit in the lease: 8% – Guaranteed residual: $40,000 a) Determine the fair value of the portable sound…

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