Question 1 The following data relates to ABC Ltd: Profit for the year ended 30 June 20X1, $500,000. On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000. On 7 April 20X1, the interim dividend was paid. For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting. The directors recommended a final dividend of $250,000 to be paid. The shareholders accepted the final dividend at the annual general meeting, and payment was made on 14 September 20X1. Required: Prepare journal entries to record the above dividend payments. Prepare the retained profits general ledger account.   Question 2 Adelaide…

Question 1 Christchurch Packaging Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:     Machine-hours required to support estimated production 154,000   Fixed manufacturing overhead cost $659,000   Variable manufacturing overhead cost per machine-hour $4.50   Required (show your calculations):   a. Compute the predetermined overhead rate. b. During the year, Job 546 was started and completed. The following information was available with respect to this job:     Direct materials requisitioned $370   Direct labour cost $250   Machine-hours used 34   Compute the total manufacturing cost assigned to Job 546.   c. During the year, the company worked a total of 145,700 machine-hours on all jobs and…

Scenario Bikes 2000 Ltd produce two high end bicycle products. They need you to create a spreadsheet that can conduct a multi-product Cost Volume Profit Analysis.  You can assume that all products made are sold and that sales price, fixed costs, and the sales mix stay constant. You will need to calculate the labour costs, material costs, fixed costs and variable costs and then work out the break even volume using a weighted contribution margin.  You have also been asked to show a forecast for different unit volumes for a selected product line and produce a break even analysis line chart.  Download the full instructions and a mark breakdown from iLearn.   Start by downloading the assessment workbook from iLearn and…

Question 1 Paramel Beverages bottles two soft drinks under licence to Cadaver Ltd. at its Newcastle plant. Bottling at this plant is highly repetitive, automated process. Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped and heated (to reduce condensation). The only stock held is direct materials or else finished goods. There is no work in process. The two soft drinks bottled by Paramel Beverages are lemonade and diet lemonade. The syrup for both soft drinks is purchase from Cadaver Ltd. Syrup for the regular brand contains a higher sugar content than the syrup for the diet brand. Paramel Beverages uses a lot size of 1,000 cases as the unit of analysis in…

Question 1 Yolanda bought a 180-day $100000 bank bill 74 days ago for $98300.00.She sold it to George today and received $99000.00. Draw a cash flow diagram that captures the details of Yolanda’s transactions. Calculate the purchase yield (simple interest rate) and sale yield (simple interest rate) of this bill (as a percentage, rounded to 2 decimal places). Without any further calculations, explain how the selling price will change if George accepts a lower yield. Calculate capital gain or capital loss component of Yolanda’s investment (in dollars and cents, to the nearest cent). Assuming Yolanda borrowed to purchase the bond, what is the break-even rate of interest of borrowing (simple interest, as a percentage, rounded to 2 decimal places)? If the…

Q1 John Smith, a college student, plans to sell CD players over the internet & by mail order during the semester to help pay his expenses. He buys the players for $29 & sells them for $50. If payment by cheque accompanies the mail order (estimated to be 40% of sales), he gives 10% discount. If customers include a credit card number for either internet or mail order (estimated 30% of sales), they receive 5% discount. The remaining collections are estimated as follows: One month following 15% Two months following 8% Three months following 5% Uncollectable 2%   Sales forecast are as follows: September 150 units October 250 units November 350 units December 450 units January Business terminated   John plans…

Question 1 Refer to the following information listed below: Direct material used $150,000 Selling costs $5,000 Indirect labour $7,000 Administrative costs $10,000 Depreciation on factory equipment $70,000 Direct labour $40,000 Overtime premiums paid $20,000 Indirect materials $45,000   Based on the information provided above, calculate the period costs: $15,000 $20,000 $190,000 $372,000   Question 2 Yang Manufacturing makes a product called Yin. The relevant range of operations is between 2,500 units and 10,000 units of Yin per month. Per unit costs at two activity levels are as follows: 5,000 units at $17.00 per unit; 7,500 units at $13.00 per unit. Determine the cost formula that expresses the behaviour of Yang's total costs.   Question 3 The following information relates to Wells…

Electro Motors (Electro) is considering a new project to produce electric vehicles for the Australian domestic market and international markets. It has identified a property/plant that was formerly used to build petrol fuelled motor vehicles that could be refitted at minimal cost to manufacture the new electric vehicles. Electro is targeting Australian metropolitan centres for initial sales and expanding into regional centres over the next five years. International demand for electric vehicles is being driven by China and Electro has been in negotiation to provide vehicles to the Chinese market in 2025.   Electro has made the following projections: In the first year 2,000 units will be sold and growing at 10% pa. The price for each unit in the first year…

Question 1 Financial data for Safety Hire as of 30 June 2019 are: Accounts receivable $ 63 000 Wages expense $ 75 000 Equipment hire income 170 000 Advertising expense 30 000 Accounts payable 40 000 Land 75 000 Michael Donato, Capital ? Hire equipment 180 000 Cash at bank 45 000 Loan payable 50 000 Mortgage payable 130 000 Electricity expense 18 000 Building 85 000 Telephone expense 7 500   Required: Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019.   Question 2 On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during the first month of operations (ignore…