Solved Assignments

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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Accounting Information System – Excel Assignment (Simple Contracts Ltd, a public company specialising in contract labour force)

Assessment Information Subject Code:                     CISM4000 Subject Name:                    Accounting Information Systems Assessment Title:               Excel Assignment Learning Outcome 5: Develop practical skills in using excel spreadsheets to collate, manage and present accounting information to users in an acceptable format. Introduction to the individual assignment: This assignment must be completed using Microsoft Excel. These introductory excel skills you learn will be used in later units and in your professional life. Employers expect students to have good worksheet skills.   BUSINESS SCHOOL AUSTRALIA QUESTION 1 The following employees work for Simple Contracts Ltd, a public company specialising in contract labour force for different projects in construction industry. The employees are paid an hourly rate, based on…

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Transaction analysis chart, classified Income Statement and Balance Sheet

QUESTION 1                                                                                             Richard Reid commenced business as an architect trading as Archi-pro. He has provided the first month’s business transactions for July 2017. July 3 Invested $120,000 of his own funds into a business bank account and took out a personal loan for $30,000, also deposited into the business account. 4 Purchased business premises located in Hawthorn for $450,000. Richard paid a 10% deposit and the balance was financed through a mortgage with Jaz Finance Corporation at 6% per annum interest. 5 Richard purchased architectural equipment for $15,000 cash. $3,600 was paid to Design Australia for six months database subscription. Office supplies was purchased for $800 on 30 day credit terms 6 Office equipment was acquired for $4,000 cash. Paid $3,600…

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Scenario 2 Property, Plant and Equipment

Scenario 2 Property, Plant and Equipment ChiHerbal Ltd had the following information regarding its equipment as at 30 June 2015: Equipment (at cost) $520,000 Accumulated depreciation 150,000 370,000   The equipment consisted of two machines, Machine A and Machine B. Machine A had cost $310 000 and had a carrying amount of $190 000 at 30 June 2015, and Machine B had cost $210 000 and was carried at $180 000. Both machines are measured using the cost model, and depreciated on a straight-line basis over a 10-year period. On 31 December 2015, the company’s directors decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine A was revalued to $190 000 with…

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Adrenaline Junkies Rafting (AJR) – Accounting

Background Adrenaline Junkies Rafting (AJR) is a local provider of white-water rafting trips. AJR has been in business for five years and is a sole proprietorship. The owner, Bill Flip, has asked you to take on the responsibility of maintaining the business books. Project Instructions Open T accounts for all of the accounts on the May 31, 20xx trial balance. Post the June transactions and adjusting entries to the T accounts. Prepare an adjusted trial balance after you have posted all of the transactions. Prepare an income statement and balance sheet for the month ended June 30, 20xx. Submission Instructions Submit the adjusted trial balance, income statement and balance sheet you have prepared on either MS Excel or MS Word or…

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Yoshi Ltd acquired 70% of the share capital of Wario Ltd for $210,000

On 1 July 2016, Yoshi Ltd acquired 70% of the share capital of Wario Ltd for $210,000. At thisdate, the equity of Wario Ltd consisted of: $Share capital 170,000 General reserve 30,000 Retained earnings 50,000 At the date of acquisition all assets and liabilities of Wario Ltd were carried in their accountingrecords at fair values with the exception of a block of land with the fair value being $25,000above the carrying amount. Additional information: (a)On 1 January 2017, Wario Ltd purchased inventory from Yoshi Ltd for $20,000 at amark-up of 25%. By 30 June 2017, Wario Ltd still held inventory that it had bought fromYoshi Ltd for $8,000. (b)The transfer to the general reserve by Wario Ltd during the year was from post-acquisition retained…

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