Solved Assignments

HappyDaze T-shirts manufactures and prints customised designs on T-shirts

Cost behavior; engineered cost; committed and discretionary costs: manufacturer (10 Marks) HappyDaze T-shirts manufactures and prints customised designs on T-shirts. Below is a list of some of their major costs. (a)           Cost of daily radio advertising on the local community radio station. (b)           Cost of the fabric used to make the T-shirts. (c)           Cost of the ink used in the designs. (d)           Salary of the managing director. (e)           Wages of the production employees who sew and print the T-shirts. (f)            Cost of movie tickets provided for the Employee of the Month award each month. (g)           Depreciation of the sewing machines, calculated on a units of production basis. (h)           Cost of electricity used in the factory building. (i)            Rent of the building.…

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Medina Company received its February bank statement on March 6. The statement showed a balance of

Medina Company received its February bank statement on March 6. The statement showed a balance of $316,500. Included on the statement were memorandum showing collections from Medina customers (A/R), totalling $16,000. The statement also showed a returned check for a customer who paid the balance on his account, for $2,825. The bank charged a returned check fee of $75 for this NSF check. This $75 charge will be added to the customer’s balance. There were other service charges for the monthly service charge and ATM fees, totalling $200. These are bank service charge expenses. Medina’s accountant looked at her accounting records. At the end of February, the cash balance was $312,300. The statement did not reflect a deposit made late on…

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Impairment, two CGUs – Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU.

Exercise 7.14 – Impairment, two CGUs Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2016, the carrying amounts of the assets of the two divisions were: Time Leisure Plant $1 500 $1 200 Accumulated depreciation (650) (375) Patent 240 Inventories 54 75 Receivables 75 82 Goodwill 25 20   The receivables were regarded as collectable, and the inventories’ fair value less costs of disposal was equal to its carrying amount. The patent had a fair value less costs of disposal of $220. The plant at Time was depreciated at $300 p.a., and that at Leisure was depreciated at $250 p.a. Last Ltd undertook impairment testing at 31 December 2016,…

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Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees

Accounting for defined benefit superannuation plans Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Wattle Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan:   2016 $ Present value of the defined benefit obligation 1 Jan. 20000000 Past service cost 2000000 Net interest ? Current service cost 800000 Benefits paid 2100000 Actuarial loss on DBO 100000 Present value of the defined benefit obligation 31 Dec.…

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FINC20018T22017 Financial Statements, Analysis, Time Value of Money, Risk and Return

Question 1 [Theory]: Understanding Financial Statements [Chapter 3 Study Questions 3.1, 3.2, 3.3, 3.4]   Develop your responses by reviewing peer-reviewed articles, professional publications and/or credible texts. Part 1 Describe the content and the importance of the balance sheet and the income statement. Part 2 From the firm’s perspective, how are dividends different from interest payments? Part 3 What is a firm’s net working capital, and what does it tell you about the liquidity of a firm?   Question 2 [Calculation-based]: The Income Statement [Chapter 3 Study Questions 3.2 and Study Problems 3.1, 3.2, 3.3] (Refer to Example on page 46 of Textbook)   Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings.…

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During January, Microchem Ltd produced 1200 units of special product called Stylex, and the accounting records indicated the following

Question 1  During January, Microchem Ltd produced 1200 units of special product called Stylex, and the accounting records indicated the following: Direct material purchased                         36000 kilograms @ $1.30 per kilogram Direct material used                                 19000 kilograms Direct labour 4200 hours @ $17 per hour Stylex has the following standard prime costs: Direct material: 20 kilograms @ $1.20 per kilogram          $24.00 Direct labour hours: 4 hours @ $16 per hour            64.00 Standard prime cost per unit          $88.00 Required: 1              Calculate the total standard direct material costs and direct labour costs for January. (2 marks) 2              For the month of January, calculate the following variances, indicating whether each is favourable or unfavourable: a) Direct material price variance. b) Direct material quantity…

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Natural Cosmetics Ltd (NCL) has used a conventional cost accounting system to apply quality control costs

Management accounting information Natural Cosmetics Ltd (NCL) has used a conventional cost accounting system to apply quality control costs uniformly to all products at a rate of 16 per cent of direct labor cost. Monthly direct labor cost for Satin Sheen make-up is $98 000. In an attempt to distribute quality control costs more equitably, NCL is considering activity-based costing. The data on the following page relates to monthly quality control costs for Satin Sheen make-up:   Activity Cost Driver Per unit of activity driver Quantity of activity driver for enamel paint Incoming material inspection Type of material $23 per type 24 types In-process inspection Number of units $0.28 per unit 35000 units Product certification Pre-order $144 per order 50 orders…

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Cost Classifications and Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs

Question 1 Cost Classifications Consider the following costs that were incurred during the current year: Tire costs incurred by Ford Motor Company. Sales commissions paid to the sales force of Dell Inc. Wood glue consumed in the manufacture of Thomasville furniture. Hourly wages of refinery security guards employed by ExxonMobil Corporation. The salary of a financial vice president of Hewlett Packard. Advertising costs of Coca-Cola. Straight-line depreciation on factory machinery of Boeing Corporation. Wages of assembly-line personnel of Whirlpool Corporation. Delivery costs on customer shipments of Ben & Jerry’s ice cream. Newsprint consumed in printing The New York Times. Plant insurance costs of Texas Instruments. Glass costs incurred in light-bulb manufacturing of General Electric.   Required: Evaluate each of the preceding…

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The trial balance of Winter Ltd includes the following asset, liability and equity accounts at 30 June 2017

Financial statement presentation The trial balance of Winter Ltd includes the following asset, liability and equity accounts at 30 June 2017:   DR $ CR $ Cash at bank 18,200 Cash management account 150,000 Accounts receivable 123,900 Interest receivable 6,700 Inventory 212,400 Raw materials 100,500 Prepaid rent 13,600 Investment property 614,000 Loan receivable 60,000 Land (at cost) 1,100,000 Plant and equipment (at cost) 652,200 Accumulated depreciation – plant and equipment 104,300 Goodwill 68,300 Accounts payable 75,800 Allowance for doubtful debts 14,600 Current tax liability 33,500 Accrued wages payable 8,200 Interest payable 8,300 Dividends payable 45,000 Provision for annual leave 36,000 Provision for long service leave 27,000 Provision for warranty 17,000 Debentures (due April 2020) 600,000 Bank loan 500,000 Share capital 500,000…

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Costing – You have just been appointed as the management accountant for Close Up and Personal (CUP) and HappyDaze

Question 1: Management accounting information for resource management (10 Marks) You have just been appointed as the management accountant for Close Up and Personal (CUP), a company that sells pottery items, jewellery and cool clothing, featuring personal digital photos. This company employs a team of 12 designers who design the pottery items, jewellery and clothing. These products are manufactured by independent companies. CUP then prints the customer ordered photos onto the products and sells them to customers through six sales outlets located in shopping malls. Required: 1              Identify the specific types of management accounting information that may be needed by the following employees, on a monthly basis, to help them control operations: (a)           Manager of each retail outlet. (b)           Manager of…

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Healey Ltd is a small management consultancy, with 25 employees.  The Managing Director is considering purchasing office

Business Scenario Healey Ltd is a small management consultancy, with 25 employees.  The Managing Director is considering purchasing office productivity software for her employees but is unsure of the cost, or the benefits, of such a purchase. You have been employed to achieve two tasks: task 1) to calculate the costs of this purchase, and task 2) to describe some benefits of the software.   Task 1: Costings for office productivity software and training (30% of total marks) You have been asked to calculate total training and product costs for Healey Ltd. Use the figures from the table below in your calculations:   Training Types Cost per person (excluding VAT) Number of staff undertaking training Basic £30.00 10 Intermediate £40.00 25…

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Perpetual Inventor Y System with Returns – TooBakko Ltd

During the year ended 30 June 2014, TooBakko Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST. 2013 July        1 Inventory on hand         200 units @ $5.00 each 30 Sales                      120 units Aug. 25 Purchases               300 @ $5.25 30 Sales                      250 units Sept. 3 Purchases                450 units @ $5.30 10 Purchases returns         50 damaged units from 3 September purchase 30 Sales                       300 units Oct.       5 Purchases               300 units § $5.40 Dec.      8 Purchases              250 units at $5.45 11 Sales                      500 units 2014 Feb.       21 Purchases            150 units @ $5.50 Marc 18 Purchases               100 units at $5.60 April 30 Sales                        300 units May     2 Sales returns                   30 unitsfrom 30 April sales,…

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