Solved Assignments

Budgeted Income Statement and Supporting Budgets – The budget director of Feathered Friends Inc.

The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit   Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at $27 per unit Bird feeder 270 units at $40 per unit   Desired inventories at December 31: Direct materials: Wood 220 ft. Plastic 200 lbs. Finished products: Bird house 290 units at $27 per unit Bird feeder 250 units at $41 per unit   Direct materials…

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Minden Company is a wholesale distributor of premium European chocolates

Minden Company is a wholesale distributor of premium European chocolates. It buys and sells the chocolate per box. The company’s balance sheet as of April 30 is given below: Minden Company Balance Sheet March 31 (in Bhd) Assets Cash     9,000 Accounts receivable 54,000 Inventory 0 Buildings and equipment, net of depreciation    207,000 Total assets 270,000 Liabilities and Stockholders’ Equity Accounts payable   63,000 Note payable 14,500 Common stock 180,000 Retained earnings     12,500 Total liabilities and stockholders’ equity 270,000   The company is in the process of preparing a budget for April to June  and has assembled the following data.   Based on historical data, selling price per box is Bhd110. The premium European chocolates cost per box is Bhd100 and monthly…

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Bezos Ltd is developing departmental overhead rates based on machine hours

Bezos Ltd is developing departmental overhead rates based on machine hours for its moulding department and direct labour hours for its assembly department. The moulding department has 20 machines that each run for 2,000 hours per year. The assembly department employs 80 people, who each work 2,000 hours per year. The production related overhead costs distributed to the moulding and assembly departments are budgeted at $500,000 and $740,000 respectively. Two support departments, repairs and engineering, directly support the two production departments, moulding and assembly. These support departments have budgeted costs of $100,000 and $580,000 respectively. The production departments’ overhead rate cannot by determined until the support department costs are allocated. The following schedule reflects use of the output of the repairs…

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ACST201 Financial Modelling – Spreadsheet Project Task 1 – S1 2019

In order to fund its short-term operations, the Chief Financial Officer (CFO) of Best Company has decided use short-term money market instruments. The CFO has asked you to advise the company of the best course of action. After a lengthy discussion with the CFO, it was decided to issue bank accepted bills of exchange (bank bills). In order to obtain board approval, the CFO has asked you to create a simple spreadsheet to illustrate the immediate factors (such as interest rates, fees and charges) that affect the amount of funds raised, and ultimate effective cost to Best Company of issuing the bank bills. Create a simple spreadsheet for calculating bank bill prices and the effective cost of raising funds through the…

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Aus Car Exes (ACE) is set up as a sole trader and is analyzing whether to enter the discount used rental car market

Aus Car Exes (ACE) is set up as a sole trader and is analyzing whether to enter the discount used rental car market. This project would involve the purchase of 100 used, late-model, mid-sized cars at the price of $9500 each. In order to reduce their insurance costs, ACE will have a LoJack Stolen Vehicle Recovery System installed in each car, at a cost of $1000 per vehicle. ACE will also utilize one of its abandoned lots to store the vehicles. If ACE does not undertake this project, it could lease this lot to an auto-repair company for $80000 per year. The $20000 annual maintenance cost on this lot will be paid by ACE whether the lost is leased or used for this project. In addition, if…

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Pumpkin Group – Consolidated financial statements

 Pumpkin Group – Consolidated financial statements   Pumpkin Ltd is a large successful agricultural company based in Morrinsville. You are the assistant accountant with the company and have been asked to draft the company’s group accounts. Tom Ato, head of group accounting briefed you as follows and followed up with emailed information for you to work with.   Tom has stressed that the company has a staff code of conduct, which requires staff to treat all company information as strictly confidential. The code permits reviewing reference material, conducting research, and discussing and seeking advice about accounting procedures with others but does not allow sharing any financial information with anyone including unauthorised staff. He suggests that similar ethics apply, to those you…

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Differentiate among FIFO, LIFO and Average inventory cost flow system

Question 1 (Periodic inventory system) Horan Ltd has the following inventory transactions for the month of December 2016. All inventory items are identical. During the month of December, the following inventory transactions took place in the Horan: Opening inventory recorded 1 December 2016; 1000 units @$10 Purchases on 1 December 2016; 3000 units @$12 Purchases on 12 December 2016; 4000 units @$14 Purchases on 21 December 2016; 2000 units @$15 Horan Ltd sells 8000 units during the month and has 2000 units on hand at the month end. At the month end, the net realisable value of the inventory item is $20 per unit. Required: Compute the costs of sales and ending inventory following the periodic system to record inventory the…

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Carnival Corporation has recently placed into service some of the largest cruise ships

Carnival Corporation has recently placed into service some of the largest cruise ships in the world. One of these ships, the Carnival Glory, can hold up to 3,000 passengers and cost $510 million to build. Assume the following’ additional information: The average occupancy rate for the new ship is estimated to be 80% of capacity. There will be 300 cruise days per year. The variable expenses per passenger are estimated to be $75 per cruise day. The revenue per passenger is expected to be $310 per cruise day. The fixed expenses for running the ship, other than depreciation, are estimated to be $78,000,000 per year. The ship has a service life of 10 years, with a salvage value of $85,000,000 at…

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Polly is a Year 9 student. She currently has $3,000 in a savings account

Question 1 Polly is a Year 9 student. She currently has $3,000 in a savings account that pays 4% annually. She intends to use her current savings plus what she can save over the next 4 years to buy a car. The car will cost $15,000 in 4 years. How much should she save each year if she intends to purchase the car in 4 years? All relevant cash flows will occur at the end of each year and interests are compounded yearly. Ben took up a loan to purchase a farm machine. The terms of his loan require him to make quarterly payments of $3,434 over 7 years. The relevant rate of interest is 7.2% per year, compounded quarterly. For…

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BUDGETED FINANCIAL STATEMENTS – Sachin Reddy operates a gift store at Brightwater Mall called Lucky Star

Sachin Reddy operates a gift store at Brightwater Mall called Lucky Star. Sachin’s estimate of sales are given in the table below. Sales tend to reduce in the winter.   Projected Sales   Month $ April 56,000 May 55,000 June 45,000 July 40,000   As a general rule 70% of sales are for cash with the remainder on credit. Of the credit sales, 90% will be received in the month after sale and the balance two months after. Purchases and Inventories Sachin sources most of the gifts from wholesalers in the Nelson region. Goods are purchased in anticipation of the next month’s sales. The purchases cost is 65% of the selling price. The wholesalers give a month’s credit with payment due…

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ACC515 – You wish to go on an overseas family holiday

Question 1 (a) You wish to go on an overseas family holiday in 15 months’ time which will cost $20,000. If your financial institution is offering you 6% pa (compounded monthly), how much do you need to deposit in your account each month in order to save the required amount before you go on holidays? (b) You have been offered the opportunity to purchase a mining business investment which is priced at $16,000,000. The investment involves some start-up costs in the first years and some mine re-mediation costs after the project is completed in 10 years. The expected cash flows for the project are below and you have an expected rate of return of 15% pa. End of year Cash flow…

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ACST101 Finance 1A – Excel Assignment, Session 1 2019

ACST101 Finance 1A – Excel Assignment, Session 1 2019 General Instructions All students must submit an Excel assignment of their individual own work. Rewording something that someone else prepares constitutes cheating. No soliciting answers from others. No providing answers for others. Download the Excel Assignment Template from iLearn and save it with the name of “studentfamilyname” “IDnumber” S1 2019.xlsx, e.g., Smith 45678901 S1 2019.xlsx. Use Microsoft Excel for Windows or Mac. The version can be no older than Microsoft Office 2013. If in doubt, use a computer lab at the University. Don’t just switch to use another computer unless you know it uses the correct version. A penalty of 5 marks applies if the sheets are found to be unprotected, which…

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