Job order costing                                                                          40 marks Your friend has his own business (Sisulu Ltd). He is currently using job order costing and is applying a plant-wide overhead rate. At the beginning of March, Sisulu Ltd had two jobs in process: Job 24 and Job 25, with the following accumulated cost information:   Job 24 $ Job 25 $ Direct materials 5 100 1 500 Direct labour 1 200 3 000 Applied overhead   780 1 950 Balance, 1 March 7 080 6 450   During March, two more jobs (26 and 27) were started. The following direct materials and direct labour costs were added to the four jobs during the month of March: Job 24 $ Job 25 $ Job…

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Question 1 On December 31, 2014, Paladium International purchased 70% of the outstanding common stock of Sennex Chemical. Paladium paid $140,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000 and an expected remaining useful life of 5 years. At the time of purchase, Sennex had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000. Any remaining excess fair value was attributed to goodwill. The separate financial statements at December 31, 2015 appear in the first two columns of the consolidation workpapers shown below.   Complete…

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Answer all the questions, each question carries 20 marks.   Question: 1   What is accounting? Discuss its Advantages and Disadvantages in a detailed manner?                                                                        Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the result thereof. According to the American Accounting Association [AAA];   Question:2 Yankee Hotel Foxtrot initiated operations on July 1, 2014. To manage the company officers and managers have requested monthly financial statements starting July 31, 2014. The adjusted trial balance amounts at July 31 are shown below.     Debits   Credits Cash $ 7,680 Accumulated Depreciation- Equipment $ 840 Accounts…

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Saturn Olive Oil Co is a subsidiary of Mercury Australasia based in Cobram Victoria and produces a range of olive oil products. Olives are purchased from sub-contract olive plantation farmers in an around Cobram. The olives are cold pressed and the oil processed and filtered before bottling and sold to a variety of wholesale and retail vendors under several different brand names. The following data relates to the production of Saturn Olive Oil during the month of February 2017. At the start of February there was 75,000 litres of product in process. All materials are added at the start of the process and conversion costs are incurred evenly throughout whole of the process.   Work-in-Process: February 1, 2017 75,000 Litres Stage…

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On 1 July 2016, Parrot Ltd acquired 80% of the share capital of Squirrel Ltd for $264 800. On that date, the statement of financial position of Squirrel Ltd consisted of: Share capital $250 000 General reserve 10 000 Asset revaluation surplus 15 000 Retained earnings 10 000 Liabilities 180 000 $465 000 Cash $ 35 000 Inventories 70 000 Land 65 000 Plant and equipment 300 000 Accumulated depreciation — plant and equipment (130 000) Trademark 100 000 Goodwill 25 000 $ 465 000   At 1 July 2016, all identifiable assets and liabilities of Squirrel Ltd were recorded at fair value except for: Carrying amount Fair value Inventories $ 70 000 $ 80 000 Land 65 000 85 000…

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1 (Max. Marks: 25) Kalman, trading as Kalman Stores, submits to you draft accounts for the year ending 31 December 2016 and a balance sheet at that date. He explains that towards the end of the financial year his accountant resigned and he had 'finished off the books himself. He thinks that errors have occurred and asks for your help. An examination of the books reveals the following: Rent due by T. Smith for Dec 2016, amounting to $560 is not included in the accounts. A payment of $2,300 for a new computer has been debited to the sundry expense Payment was made 31 December 2016. Commission due to sales staff for the month of December, $1200, has been overlooked. Repairs…

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Question 1: Differences between management accounting and financial accounting (15 Marks) You are the financial controller of a large manufacturing organization and intend to approach the human resources (HR) manager seeking to create two new positions: a financial accountant and a management accountant. Required: 1 Prepare a briefing document for the HR manager which explains the differences between these two roles. 2 Formulate (and answer) the five likely questions that you anticipate the HR manager will ask you about these two positions when you meet. Question 2: Product cost classification: manufacturer (15 Marks) The following cost data for the current year relate to Heartstrings Pty Ltd, a greetings card manufacturer:   Service department costsl                  $ 50 000 Direct labour: wages                                               242…

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AGENDA: PROFIT PLANNING (BUDGETING) Building a master budget. Sales budget Production budget Direct materials budget Direct labor budget Manufacturing overhead budget Ending finished goods inventory budget Selling and administrative expenses budget Cash budget Budgeted income statement Budgeted balance sheet OVERVIEW OF BUDGETING A budget is a detailed plan for acquiring and using financial and other resources over a specified period. Budgeting involves two stages: Planning: Developing objectives and preparing various detailed budgets to achieve those objectives. Control: The steps taken by management to attain the objectives set down at the planning stage. PURPOSES OF BUDGETING Budgets communicate management’s plans throughout the organization. Budgeting forces managers to give planning top priority. Budgets provide a means of allocating resources to their most effective…

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Table 1 VISCOUNT LTD Balance sheets at 30 June 2014                         2015                         2016 Assets Current assets Cash 364,700 292,720 123,790 Inventories Finished products 600,000 700,000 800,000 Work in progress 245,500 258,000 342,000 Raw materials and supplies 483,050 450,000 550,000 Accounts receivable 521,000 669,280 1,184,210 Total current assets 2,214,250 2,370,000 3,000,000 Non-current assets (net of accumulated depreciation) Land (at cost) 600,000 816,300, 1,334,104 Buildings (at cost) 2,215,500 2,323,000 3,400,000 Machinery (at cost) 2,538,980 2,500,370 4,505,640 Total non-current assets 5,354,480 5,639,670, 9,239,744 Total assets 7,568,730 8,009,670 12,239,744 Liabilities Current liabilities Accounts payable 355,700 360,000 544,620 Provision for tax 500,000 500,000 800,000 Provision for dividend 130,000 430,000 672,000 Total current liabilities 985,700, 1,290,000 2,016,620 Non-current liabilities Debentures 683,030 903,370 2,999,020 Mortgages 500,000 400,000 1,000,000 Total…

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