/>Questions:Roberts should (accept /reject) the offer because operating income will
Get college assignment help at Smashing Essays Question />Questions:Roberts should (accept /reject) the offer because operating income will (decrease by $27500 / decrease by $23100 / increase by $27500 / increase by $23100)Roberts should (accept / reject) the offer if operating at capacity because operating income will (decrease by $5500 / decrease by $27500 / increase by $5500 / increase by $27500) Attachment 1 Attachment 2 Attachment 3 Attachment 4 ATTACHMENT PREVIEW Download attachment nq.png Roberts Company makes a product that regularly sells for $13.00 per unit. i (Click the icon to view additional information.) 7. If Roberts Company has excess capacity, should it accept the offer from Hawley? Show your calculations. 8. Does your answer change if Roberts Company is operating at capacity? Why or why not? ATTACHMENT PREVIEW Download attachment q1.png 7. It Roberts Company has excess capacity, should it accept the otfer from Hawley? Show your calculations. {Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs — Expected increasefldecrease) in operating income : Roberts should Y the offer because operating income will 7 ATTACHMENT PREVIEW Download attachment q2.png 8. Does your answer change if Roberts Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Roberts should the offer if operating at capacity because operating income will ATTACHMENT PREVIEW Download attachment qw.png The product has variable manufacturing costs of $7.00 per unit and fixed manufacturing costs of $1.80 per unit (based on $252,000 total fixed costs at current production of 140,000 units). Therefore, total production cost is $8.80 per unit. Roberts Company receives an offer from Hawley Company to purchase 5,500 units for $12.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Roberts does not expect any additional fixed Costs.
Instructions:Use Microsoft Word to create the report. The tables and
Question Instructions:Use Microsoft Word to create the report. The tables and graphs will be created in Microsoft Excel and copied over to the report in Word. The final report should meet the following requirements. 1. Format: a) Font – Times New Roman b) Font size – 12 c) Line Spacing – Double Space d) Page heading and numbering – Option # top left and page # top right (see below example): Option # Page # 2. Title Page – should have the following information and centered on the page (1 page) Math101 – Workplace MathematicsUnit 14 Final Assessment ReportInstructor NameStudent NameDue Date 3. Choose one of the options from the following pages and do all three parts of the option (3 pages)a) Copy and paste the tables and graphs for each part into Wordb) Each part needs to be on a separate page with headings (see below for example of format) Part 3 – Line Chart Table and GraphTableGraphQuestion 3 Part 2 – Pie Chart Table and GraphTableGraphQuestion 2 Part 1 – Bar Chart Table and GraphTableGraphQuestion 1 b) Copy and answer the questions in complete sentences for each part in Word 4. Reflection and Summary (1 page) a) Page needs to have heading (see below for example of format) Part 4 – Reflection and Summary b) Answer the following three questions:i) List 3 things that you’ve learned through working on Excel in regards to tables and graphs.ii) How could these knowledge, skills, and capabilities be used in real-world applications?iii) Explain a specific workplace example, relating to your major; where reading, analyzing, or creating a table or graph could be used.
Ms Ji-Yong has not kept proper bookkeeping records, but she
Question Ms Ji-Yong has not kept proper bookkeeping records, but she has kept notes in a personal note form of her business transactions as at 31 May 2019.The following transactions relate to financial year ended on 31 May 2018.BankCR 18 200CashDR 1 400Accounts Receivable and PayableDR 7 800CR 6 850Motor Vehicle (Net Depreciation)DR 22 500Furniture and Fittings at costDR 16 700Inventory – 31 May 2018DR 8 490Prepaid Rent and Accrued Stationery ExpenseDR 510CR 150During the financial year ended 31 May 2019, the following transactions occurred. Paid suppliers N$ 26 400 by cheque and N$ 990 by cash. During the year received N$ 38 800 by cheque and N$ 2 600 by cash. N$ 1 200 set-off was negotiated and granted. During year, customer refund amount to N$ 500. Stationery expense paid during the year was N$ 8 700 and was paid by bank cheque. Rent expense was also paid an amount of N$ 3 420 by cheque. The following expenses was paid by cheque: Transport Expense N$ 750, Telephone Expense N$ 2 150 and General Expense N$ 680, Staff Welfare N$ 500 and by cash Municipal Service N$ 380. Motor vehicle was acquired on 01 June 2017 and is depreciated at 10% per annum, Furniture and fittings was also acquired on 01 June 2018 and depreciated at 10% per annum and both on straight line method and no scrap value.At 01 June 2019, the following balances still exist in Ji-Yong books:BankCR 22 000CashDR 2 630Rent ExpenseDR 540Stationery ExpenseCR 300Inventory – 31 May 2019DR 5 540Drawings – 31 May 2019DR 16 300Accounts Receivable and PayableDR 700CR 1 260NB: THIS IS AN OLD EXAM PAPER AND USED FOR REVISION PURPOSES ONLY THANK YOU!
Conversely, what expenses are shown on your cash flow statement
Question Conversely, what expenses are shown on your cash flow statement and not in your P
I will have 4 attachments total ATTACHMENT PREVIEW Download attachment
Question I will have 4 attachments total ATTACHMENT PREVIEW Download attachment school 0.jpeg N16 1 Enter titles and accounts in the green cells Enter Numbers in the blue cells 3 Enter your Calculations in the yellow cells 4 5 Unit 4 Process Costing 7 8 Reno Co has several processing departments. Costs charged to Department A for January totaled $265,500 9 WIP 1/1 10 Materials $13,500 11 Conversion costs 8000 $21,500 12 Materials added during the month 75,000 13 Labor added during the month 104,750 14 Overhead added during the month 64,250 15 16 Records indicated that 3,500 units were in beginning WIP 30% completed as to conversion costs. 17,500 units were started 17 into production and 4,000 units were in ending WIP 60% complete as to conversion costs. Materials are entered at the 18 beginning of each process. 19 20 Beginning Units 3,500 21 Started Units 17,500 22 Ending Units 4,500 23 Materials 100% complete 24 Conversion 70% complete 25 26 1. Determine the EUP (equivalent units of production) 27 2. Determine the assignment of costs to goods transferred out and in process 28 29 WIP Dept 1 Resources Problem 1 O Type here to search e XRead more
Your client has obtained a bank loan. You are concerned
Question Your client has obtained a bank loan. You are concerned that the client may have falsified the accounts to meet certain debt covenants regarding current ratio and profitability. Discuss procedures you would apply to dispel the doubt about such falsification.
Hello, I need help figuring this out. It has multiple
Question Hello, I need help figuring this out. It has multiple parts so please help explain it all. Attachment 1 Attachment 2 Attachment 3 Attachment 4 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 12.13.01 PM.png Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below. J A comparative balance sheet and income statement is shown for Cruz, Inc; CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 64,300 $ 16,100 Accounts receivable, net 27,600 34,100 Inventory 57,700 64,000 Prepaid expenses 3,600 2,900 Total current assets 153,200 117,100 Furniture 72,600 82,200 Accum. depreciation—Furniture (11,200) (6,200) Total assets $214,600 $193,100 Liabilities and Equity Accounts payable $ 10,100 $ 14,200 Wages payable 6,000 3,300 Income taxes payable 1,000 1,800 Total current liabilities 17,100 19,300 Notes payable (long-term) 20,600 47,700 Total liabilities 37,700 67,000 Equity Common stock, $5 par value 154,700 123,700 Retained earnings 22,200 2,400 Total liabilities and equity $214,600 $193,100 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 12.13.15 PM.png CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $330,500 Cost of goods sold 212,700 Gross profit 117,800 Operating expenses Depreciation expense $25,400 other expenses 60,300 85,700 Income before taxes 32,100 Income taxes expense 11,700 Net income $ 20,400 05 12-12 Computing cash from asset sales LO P3 Furniture costing $69,600 is sold at its book value in 2017. Acquisitions of furniture total $60,000 cash, on which no depreciation is necessary because it is acquired at year—end. What is the cash inflow related to the sale of furniture? ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 12.13.22 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 12.14.31 PM.png 05 12-13 Computing financing cash outflows LO P3 1. Assume that all common stock is issued for cash. What amount of cash dividends is pai: 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid ‘
/>I will not be submitting this work as I have
Question />I will not be submitting this work as I have already turned it in and it was wrong. I am retaking the course in April and would like to see what I have done wrong. Attachment 1 Attachment 2 Attachment 3 Attachment 4 Attachment 5 Attachment 6 ATTACHMENT PREVIEW Download attachment wk6 p1.jpeg Enter number in blue cells a Enter formulas in the yellow cells Enter your narrative analysis in the green cells Kitty Hawk manufactures and distributes high end drones. The following costs are available for the year and. The company had no beginning inventory. Last year they produced 1.100 units and but only sold 1,600 units. The unit selling price was $4 300 and expenses were; Variable Cost per Unit Direct Materials Units Produced Units Sold Direct Labor 750 Unit’s Remaining Variable Mily Over Head 200 Unh selling price Venable selling and admin Annual Fixed Costs Miffy overhead fied 350 000 Find Selling and admin Expandes In 1. Compute the cost of manufacturing one unit for both verisble and absorption costing we Ched Overhead axed Doed per unit Determine the product cost far Variable Absorption is Back method Diredd Materials Direct Labor Werichie Mig OverHang Variable willing and admin ATTACHMENT PREVIEW Download attachment wk6 p2.jpeg Variable Mfg OverHead Variable selling and admin Fixed Cost per unit Total Cost per unit it 2. Prepare an income statement for both variable and absorption costing 34 Income Stimt Per unit Variable Per unit Absorption IS Unit sold 1,600 1.GOD as Sales Sales 17 Variable Prod Costs COGS VOOGS Gross Profit Less Variable selling expense Less Period Costs MFG Margin Variable selling it Less Fixed Costs Fixed Selling Food Mip Ohead Total period costs 41 Fixed Seling a Total Fixed Costs Difference we Net Income Net Income as Proof Ending Inventory Ending inventory Per unit Difference Per unit Total Ending Total ending inventory Inventory ATTACHMENT PREVIEW Download attachment wk6p3.jpeg
McCollum Company manufactures two products. Both products have the same
Question McCollum Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in productionprocesses, Product A has higher variable costs and Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss.FILL IN THE BLANKSMcCollum (should/ should not) drop product B because income will ( decrease by $40000 / decrease by $5000 / Increase by $40000 / Increase by $5000)McCollum (should/ should not) drop product B because operating income will (decrease by $17500 / decrease by $5000 / Increase by $17500 / Increase by $5000) Attachment 1 Attachment 2 Attachment 3 ATTACHMENT PREVIEW Download attachment 111111111111111111.png 9. If fixed costs cannot be avoided, should Mccollum drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits.) Expected decrease in revenue Expected decrease in total variable costs Expected increase/(decrease) in operating income Mccollum drop Product B because operating income will ATTACHMENT PREVIEW Download attachment qqqqqqqqqqqqqqqq.png 10. If 50% of Product B’s fixed costs are avoidable, should Mccollum drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits.) Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected increase/(decrease) in operating income Mccollum drop Product B because operating income will ATTACHMENT PREVIEW Download attachment wwwww.png Mccollum Company Income Statement Month Ended June 30, 2018 Total Product A Product B Net Sales Revenue 150,000 $ 75,000 $ 75,000 Variable Costs 90,000 55,000 35,000 Contribution Margin 60,000 20,000 40,000 Fixed Costs 50,000 5,000 45,000 Operating Income/(Loss) S 10,000 $ 15,000 $ (5,000)
Janelle Higgins has decided to start her own event planning
Question Janelle Higgins has decided to start her own event planning business (JH Events) in the upcoming year. She believes that she has an innovative business model and is seeking a business loan. Therefore, Janelle is in the process of putting together a business plan. As part of her business plan, Janelle must include forecasted financial statements for the first 5 years. The forecasted financial statements to be included are: Income Statement, Balance Sheet, and Statement of Cash Flows. Janelle must also include a set of calculated ratios along with an overall assessment on the projected health of the company.Please help me complete the balance sheet and cash flow statement for the above case study. Forecasting AssumptionsFirst year sales are projected to be $150,000 and grow 3% for the next two years and 5% in year 4 and 5.Cost of sales are projected to be 45% of revenue in the first year and is expected to grow at the same rate as sales.Advertising expenses are projected to be 4% of each year’s projected revenue.Janelle will need to rent equipment for the events she puts on. She has an agreement with a rental company for a flat rate of $500 per month and is sufficient to cover all of her estimated events. Starting in Year 3, she expects to be able to handle more events and the rental rate will increase to $750 per month.Janelle plans to start off by hiring 2 people to work the events with her. Each person will be paid $100 per event and is expected to work 4 events per month. After Year 3, Janelle plans to hire 2 additional people. (At this point, each person will be paid $100 per event and is expected to work 3 events per month).Office rent is estimated to be a flat rate of $1,200 per month.Utilities for the rented office space are estimated to be $300 per month.The office space Janelle plans to rent is unfurnished. She plans to purchase $15,000 worth of furniture and fixtures at the beginning of Year 1. The furniture and fixtures will have a useful life of 15 years. Janelle will also need to buy some computers and other office equipment that she will purchase for $10,000 also at the beginning of Year 1. The office equipment will have a useful life of 5 years. Both the furniture and fixtures as well as the equipment will be depreciated on a straight-line basis (Assume zero salvage value for calculations). HINT: Fixed Assets – Accumulated Depreciation = ‘Net’ Fixed AssetsJanelle is asking for a 3-year bank loan for $60,000. The estimated interest on the loan is 3% (assume simple interest). She will pay the loan back in $20,000 installments starting in Year 2. Interest is due at the end of each year and paid in January of the following year.The tax rate for JH Events is 35%. Taxes for the year just ended are payed in the first quarter of the following year.Janelle will invest $30,000 of her own money and from family and friends to start the business. This $30,000 investment of capital is also the beginning bank balance of Year 1.Schedule of expected year-end balances of selected accounts:Year 1Year 2Year 3Year 4Year 5Accounts Receivable10,00012,0008,0006,00010,000Accounts Payable2,0004,0005,0006,0009,000Customer Deposits1,5002,0003,0004,0005,000
1) Would the budgeting plans for a company that uses
Get college assignment help at Smashing Essays Question 1) Would the budgeting plans for a company that uses a just-in-time (JIT) inventory system be different than those for a company that does not? Why?
Accountants, as professionals, are expected to maintain a level of
Question Accountants, as professionals, are expected to maintain a level of ethical conduct that goes beyond society’s laws. It would be nice to believe that most individuals and CPA firms are so honest that they would not need a Code of Professional Conduct. However, there are numerous examples of companies and their auditors who engaged in dishonest practices. Large CPA firms, Arthur Anderson, and small ones have been disciplined for audit failures. Question 1: Why are accountants expected to maintain a higher level of ethical conduct?Question 2: Access the AICPA Code of Professional Conduct. List at two conducts listed in the Code.Question 3: Find at least two instances of audit failures in the last 5 years. Describe the audit failure and name the CPA firm involved (not Arthur Anderson).
This week we discuss the completion of the audit process.
Question This week we discuss the completion of the audit process. Describe the auditor’s responsibility for subsequent events occurring between:(i) The year-end date and the date the auditor’s report is signed, and(ii) The date the auditor’s report is signed and the date the financial statements are issued. Give an example of each and explain the potential accounting effects.
Given:March 2 2019 Aco has a beginning WIP inventory of
Question Given:March 2 2019 Aco has a beginning WIP inventory of zero. All materials are added into production at the beginning of its production. There is only on production WIP inventory. During the month 28,000 units were started. A the end of the month all started unites were 55% complete with respect to conversion. Direct materials placed into production had a total cost of $400,000 and total conversion cost for the month was $430,000. Aco uses the weighted average process costing methodDetermine:cost per equivalent unit of direct material for the month of March
The completion of the audit process…Describe the auditor’s responsibility for
Question The completion of the audit process…Describe the auditor’s responsibility for subsequent events occurring between:(i) The year-end date and the date the auditor’s report is signed, and(ii) The date the auditor’s report is signed and the date the financial statements are issued. Give an example of each and explain the potential accounting effects.
Given:March 1 2019 Aco has beginning WIP inventory of zero.
Question Given:March 1 2019 Aco has beginning WIP inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 34,000 unites were started. At the end on the month all started units were 55% complete with respect to conversion. Direct Materials placed into production had a total cost of $300,000 and total conversion costs for the month was $290,000. Aco uses the weighted-average process costing methodDetermine:Cost per equivalent unit of conversion for the month of March
Given:January 1 Aco had cash on hand of $80,000. All
Question Given:January 1 Aco had cash on hand of $80,000. All of January’s $222,000 sales were on account. December sales of $220,000 were also all on account. Aco typically collects 25% of receivables in the month of the sale and the balance the following month. All materials and supplies are purchased on account and Aco has a history of paying for half of these purchases in the month of purchase and half the following month. Such purchases were $172,000 for December and $160,000 for January. All other expenses including wages are paid in the month incurred. There amounted to $40,000 in December and $42,000 in January.Determine:projected ending balance of cash on hand for January
Given:January 2 2018 Aco purchased 11,000 shares of stock of
Question Given:January 2 2018 Aco purchased 11,000 shares of stock of Bco at $14 per share. Aco obtained significant influence as the purchase represents 35% ownership stake in Bco, On August 1 2018 Bco paid cash dividends of $24,000. Aco intended this investment to a long-term investment. On December 31 2018 Bco reported $54,000 of net income for FY 2018. Additionally, the current market price for Bco stock increased to $17 per share at the end of the year.Determine:how much Aco should report for its investment in Bco on December 31, 2018
Hello, I need help understanding this 3 part question. src=”/qa/attachment/9240104/”
Question Hello, I need help understanding this 3 part question. src=”/qa/attachment/9240104/” alt=”Screen Shot 2019-08-06 at 1.25.10 PM.png” /> Attachment 1 Attachment 2 Attachment 3 Attachment 4 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 1.25.10 PM.png Required information Exercise 13-10 Efficiency and profitability analysis LO P3 [The following information applies to the questions displayed below. ] Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash 5 32,200 $ 35,750 5 38,200 Accounts receivable, net 88,700 61,000 50,000 Merchandise inventory 111,500 83,800 54,500 Prepaid expenses 10,450 9,250 4,800 Plant assets, net 278,000 248,000 227,000 Total assets $520,850 $437,800 $374,500 Liabilities and Equity Accounts payable $129,200 $ 75,000 $ 51,400 Long-term notes payable secured by mortgages on plant assets 97,500 100,500 82,400 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 130,650 98,800 77,200 Total liabilities and equity $520,850 $437,800 $374,500 The company’s income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 sales $755,000 $ 600,000 Cost of goods sold $468,100 $378,000 other operating expenses 211,400 138,000 Interest expense 11,500 13,300 Income taxes 9,400 8,600 Total costs and expenses 700,400 537,900 Net income $ 54,600 $ 62,100 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 1.25.18 PM.png Total costs and expenses 100 , 400 537 ,900 Net income $ 54 , 600 $ 62, 100 Earnings per share $ 3. 34 $ 3 . 80 Evaluate the company’s efficiency and profitability by computing the following for 2017 and 2016. Exercise 13-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio Choose Numerator: / Choose Denominator: = Profit Margin Ratio = Profit margin ratio 2017 S % 2016 % ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 1.25.31 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-06 at 1.25.47 PM.png
alt=”9240106″ />Hello please may you assist with the above questions
Question alt=”9240106″ />Hello please may you assist with the above questions we have attempted to answer but we are not sure if the answers are correct Attachment 1 Attachment 2 Attachment 3 Attachment 4 Attachment 5 Attachment 6 Attachment 7 ATTACHMENT PREVIEW Download attachment attachment_08062019.png Macro Hardware Limited manufactures two types of products, a laptop and an ipod and sells them in a very competitive market. Both products are funky light-weight products that are designed for the 15 to 25 year old age group market. Due to the popularity of their products, Macro Hardware Limited is Central to modern business considering expanding into different target markets during the next financial year that commences on 1 July 2019. However management wish to first evaluate the risk and expected profitability of the existing target market for 2020 before embarking on these new endeavours. Why is accounting so important? Management has requested that the financial accountant collect all the relevant financial information relating to the two products for the 2019 financial year, and prepare a budget for them for 2020. The financial accountant is not sure how to allocate some of the cost between the two products, but all the 3. How did the company obtain anu use other relevant budget information relating to the two products for the financial year ending 30 June 2019 is summarised in the table below (note that this is summarised on a per unit basis): lates and reports on financial info Financial information for the 30 June 2019 financial year Laptop iPod Selling price R15 000 2 000 Direct materials R4 500 R400 Direct labour (R160 per hour) R1 920 R320 Variable marketing and distribution costs R800 R200 Understanding statements of comprehensive income, financial position and cash flows: Fixed marketing and distribution costs R600 R100 Actual production and sales in units 900 2 700 Macro Hardware Limited adopted just-in-time method and does not keep inventory of laptops or iPods. Also, there is no opening or closing work-in-progress or raw materials for both products. Direct labourers used in the manufacturing of the products signed fixed-term contracts with the company so that they can be paid for both idle and production hours. Labourers were operating at nd profit can be monitored, planned and full capacity during the 30 June 2019 financial year – hence the possible expansion need. Fixed marketing and distribution costs have been allocated to units based on actual sales volume that were sold during the 2019 financial year. The laptop and iPod prices are dictated by the market and Macro Hardware Limited does not have much room to increase the selling prices. The expected production and sales in units for the 30 June 2020 financial year is as follows: Budget information for the 30 June 2020 financial year Laptop iPod Expected production and sales in units 800 2 400 O The total fixed manufacturing overheads costs for the 2019 financial year was R7 650 000 and it is expected to remain the same in the 2020 financial year. Fixed manufacturing overhead costs are currently allocated to production based on the number of direct labour hours. REQUIRED Marks (a) Determine the margin of safety units for Macro Hardware Limited in the financial year ending 30 June 2020 assuming the expected sales mix remains constant. 11 Prepare a performance budget for the laptops and iPods manufactured by Macro Hardware Limited and for the business as a whole for the financial year (b) ending 30 June 2020 using the absorption costing method. The budget should 10 have the following headings: Laptop iPods Total ( C ) Comment on the budgeted profitability of Macro Hardware Limited for the 18 financial year ending 30 June 2020 and make recommendations that will improve the profitability of the business. (d) Critically evaluate the allocation of fixed manufacturing overheads between the two products (i.e. laptops and iPods) and make recommendation for improvement 9 (if any) for Macro Hardware Ltd.Read more ATTACHMENT PREVIEW Download attachment attachment_08062019.png Macro Hardware Limited manufactures two types of products, a laptop and an ipod and sells them in a very competitive market. Both products are funky light-weight products that are designed for the 15 to 25 year old age group market. Due to the popularity of their products, Macro Hardware Limited is Central to modern business considering expanding into different target markets during the next financial year that commences on 1 July 2019. However management wish to first evaluate the risk and expected profitability of the existing target market for 2020 before embarking on these new endeavours. Why is accounting so important? Management has requested that the financial accountant collect all the relevant financial information relating to the two products for the 2019 financial year, and prepare a budget for them for 2020. The financial accountant is not sure how to allocate some of the cost between the two products, but all the 3. How did the company obtain anu use other relevant budget information relating to the two products for the financial year ending 30 June 2019 is summarised in the table below (note that this is summarised on a per unit basis): lates and reports on financial info Financial information for the 30 June 2019 financial year Laptop iPod Selling price R15 000 2 000 Direct materials R4 500 R400 Direct labour (R160 per hour) R1 920 R320 Variable marketing and distribution costs R800 R200 Understanding statements of comprehensive income, financial position and cash flows: Fixed marketing and distribution costs R600 R100 Actual production and sales in units 900 2 700 Macro Hardware Limited adopted just-in-time method and does not keep inventory of laptops or iPods. Also, there is no opening or closing work-in-progress or raw materials for both products. Direct labourers used in the manufacturing of the products signed fixed-term contracts with the company so that they can be paid for both idle and production hours. Labourers were operating at nd profit can be monitored, planned and full capacity during the 30 June 2019 financial year – hence the possible expansion need. Fixed marketing and distribution costs have been allocated to units based on actual sales volume that were sold during the 2019 financial year. The laptop and iPod prices are dictated by the market and Macro Hardware Limited does not have much room to increase the selling prices. The expected production and sales in units for the 30 June 2020 financial year is as follows: Budget information for the 30 June 2020 financial year Laptop iPod Expected production and sales in units 800 2 400 O The total fixed manufacturing overheads costs for the 2019 financial year was R7 650 000 and it is expected to remain the same in the 2020 financial year. Fixed manufacturing overhead costs are currently allocated to production based on the number of direct labour hours. REQUIRED Marks (a) Determine the margin of safety units for Macro Hardware Limited in the financial year ending 30 June 2020 assuming the expected sales mix remains constant. 11 Prepare a performance budget for the laptops and iPods manufactured by Macro Hardware Limited and for the business as a whole for the financial year (b) ending 30 June 2020 using the absorption costing method. The budget should 10 have the following headings: Laptop iPods Total ( C ) Comment on the budgeted profitability of Macro Hardware Limited for the 18 financial year ending 30 June 2020 and make recommendations that will improve the profitability of the business. (d) Critically evaluate the allocation of fixed manufacturing overheads between the two products (i.e. laptops and iPods) and make recommendation for improvement 9 (if any) for Macro Hardware Ltd.Read more ATTACHMENT PREVIEW Download attachment attachment_08062019.png Macro Hardware Limited manufactures two types of products, a laptop and an ipod and sells them in a very competitive market. Both products are funky light-weight products that are designed for the 15 to 25 year old age group market. Due to the popularity of their products, Macro Hardware Limited is Central to modern business considering expanding into different target markets during the next financial year that commences on 1 July 2019. However management wish to first evaluate the risk and expected profitability of the existing target market for 2020 before embarking on these new endeavours. Why is accounting so important? Management has requested that the financial accountant collect all the relevant financial information relating to the two products for the 2019 financial year, and prepare a budget for them for 2020. The financial accountant is not sure how to allocate some of the cost between the two products, but all the 3. How did the company obtain anu use other relevant budget information relating to the two products for the financial year ending 30 June 2019 is summarised in the table below (note that this is summarised on a per unit basis): lates and reports on financial info Financial information for the 30 June 2019 financial year Laptop iPod Selling price R15 000 2 000 Direct materials R4 500 R400 Direct labour (R160 per hour) R1 920 R320 Variable marketing and distribution costs R800 R200 Understanding statements of comprehensive income, financial position and cash flows: Fixed marketing and distribution costs R600 R100 Actual production and sales in units 900 2 700 Macro Hardware Limited adopted just-in-time method and does not keep inventory of laptops or iPods. Also, there is no opening or closing work-in-progress or raw materials for both products. Direct labourers used in the manufacturing of the products signed fixed-term contracts with the company so that they can be paid for both idle and production hours. Labourers were operating at nd profit can be monitored, planned and full capacity during the 30 June 2019 financial year – hence the possible expansion need. Fixed marketing and distribution costs have been allocated to units based on actual sales volume that were sold during the 2019 financial year. The laptop and iPod prices are dictated by the market and Macro Hardware Limited does not have much room to increase the selling prices. The expected production and sales in units for the 30 June 2020 financial year is as follows: Budget information for the 30 June 2020 financial year Laptop iPod Expected production and sales in units 800 2 400 O The total fixed manufacturing overheads costs for the 2019 financial year was R7 650 000 and it is expected to remain the same in the 2020 financial year. Fixed manufacturing overhead costs are currently allocated to production based on the number of direct labour hours. REQUIRED Marks (a) Determine the margin of safety units for Macro Hardware Limited in the financial year ending 30 June 2020 assuming the expected sales mix remains constant. 11 Prepare a performance budget for the laptops and iPods manufactured by Macro Hardware Limited and for the business as a whole for the financial year (b) ending 30 June 2020 using the absorption costing method. The budget should 10 have the following headings: Laptop iPods Total ( C ) Comment on the budgeted profitability of Macro Hardware Limited for the 18 financial year ending 30 June 2020 and make recommendations that will improve the profitability of the business. (d) Critically evaluate the allocation of fixed manufacturing overheads between the two products (i.e. laptops and iPods) and make recommendation for improvement 9 (if any) for Macro Hardware Ltd.Read more ATTACHMENT PREVIEW Download attachment attachment_08062019.png 1: Finan Question 2 (a) Margin of Safety = Expected Sales Units – Break Even Sales Units 2020 Expected Sales Units . Laptop = 800 . IPod = 2400 Break Even Sales Units (1 item) = Total Fixed Manufacturing Overhead Costs Contribution Margin Per Unit Total Fixed Manufacturing Overhead Cost = 7,650,000 Contribution Margin Per Unit = Selling Price per unit – Variable Costs per unit Component Laptop IPod Selling Price per unit 15,000 2,000 Direct Material per unit (4,500 (400) Direct Labour per unit (1,920 (320 Contribution Margin per unit 8,580 1,280 9700 1500 Weighted Average Contribution Margin per unit (based on expected sales mix) Sales Mix . Total expected sales = 800 (laptops) 2400 (IPods) = 3200 Laptops Mix = 800 3200 = 25% Ipods Mix = 2400 3200 = 75% Weighted Average Contribution Margin Item Calculation Answer Laptop 8,580 x 25% 2,145 Ipod 1,280 x 75% 960 Weighted Average Contribution Margin 3, 105 Break Even Units (more than 1 items) = Total Fixed Manufacturing Overhead Costs : Weighted Average Contribution Margin = 7,650,000 3,105 = 2464 unitsRead more ATTACHMENT PREVIEW Download attachment attachment_08062019.png 1: Finan Question 2 (a) Margin of Safety = Expected Sales Units – Break Even Sales Units 2020 Expected Sales Units . Laptop = 800 . IPod = 2400 Break Even Sales Units (1 item) = Total Fixed Manufacturing Overhead Costs Contribution Margin Per Unit Total Fixed Manufacturing Overhead Cost = 7,650,000 Contribution Margin Per Unit = Selling Price per unit – Variable Costs per unit Component Laptop IPod Selling Price per unit 15,000 2,000 Direct Material per unit (4,500 (400) Direct Labour per unit (1,920 (320 Contribution Margin per unit 8,580 1,280 9700 1500 Weighted Average Contribution Margin per unit (based on expected sales mix) Sales Mix . Total expected sales = 800 (laptops) 2400 (IPods) = 3200 Laptops Mix = 800 3200 = 25% Ipods Mix = 2400 3200 = 75% Weighted Average Contribution Margin Item Calculation Answer Laptop 8,580 x 25% 2,145 Ipod 1,280 x 75% 960 Weighted Average Contribution Margin 3, 105 Break Even Units (more than 1 items) = Total Fixed Manufacturing Overhead Costs : Weighted Average Contribution Margin = 7,650,000 3,105 = 2464 unitsRead more ATTACHMENT PREVIEW Download attachment attachment_08062019.png 1: Finan Question 2 (a) Margin of Safety = Expected Sales Units – Break Even Sales Units 2020 Expected Sales Units . Laptop = 800 . IPod = 2400 Break Even Sales Units (1 item) = Total Fixed Manufacturing Overhead Costs Contribution Margin Per Unit Total Fixed Manufacturing Overhead Cost = 7,650,000 Contribution Margin Per Unit = Selling Price per unit – Variable Costs per unit Component Laptop IPod Selling Price per unit 15,000 2,000 Direct Material per unit (4,500 (400) Direct Labour per unit (1,920 (320 Contribution Margin per unit 8,580 1,280 9700 1500 Weighted Average Contribution Margin per unit (based on expected sales mix) Sales Mix . Total expected sales = 800 (laptops) 2400 (IPods) = 3200 Laptops Mix = 800 3200 = 25% Ipods Mix = 2400 3200 = 75% Weighted Average Contribution Margin Item Calculation Answer Laptop 8,580 x 25% 2,145 Ipod 1,280 x 75% 960 Weighted Average Contribution Margin 3, 105 Break Even Units (more than 1 items) = Total Fixed Manufacturing Overhead Costs : Weighted Average Contribution Margin = 7,650,000 3,105 = 2464 unitsRead more ATTACHMENT PREVIEW Download attachment attachment_08062019.png Recommendations Management may consider discontinuing the production and sale of the ipods due to them seeming not being profitable . This may be further supported by the fact that technological advancements will continue making devices like ipod undesirable as othe devices like cell phone are able to perform Ipod related tasks (storing music) and more. The market is likely to decrease the selling price of ipods due to looming technological advancements. This will continue to eat into the profitability of the Ipods. . Discontinuing the production and sale of Ipods will allow the company to benefit from costs save from no longer producing and selling the Ipods. Managements must consider an alternative (more accurate) approach for allocating the overheads costs to ensure all item are costed accurately. Management may look into locating alternative suppliers who may offer the material at more reasonable rates. Managements should consider training stuff more frequently to improve/reduce the times each labourer takes to manufacture the laptops and ipod to reduce labour costs, Management should consider introducing machinery equipment to improve production efficiencies and reduce direct labour costs.
This question was created from Project Paper A152 https://www.coursehero.com/file/14558334/Project-Paper-A152/ Country
Question This question was created from Project Paper A152 https://www..com/file/14558334/Project-Paper-A152/ Country in which I plan to do business is Germany ATTACHMENT PREVIEW Download attachment 14558334-333632.jpeg Use The Wall Street Journal or another data source to record the interest rate differential between the interest rate of the foreign country in which you plan to do business and the U.S. rate over the last five or so quarters. Then, review the exchange rate percentage change in the foreign currency of concern over each of those corresponding quarters to determine whether the international Fisher effect (IFE) appears to hold over those quarters for that currency.
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