ACCT2002 Financial Reporting Assignment Help and Solution,

Assignment Detail:- ACCT2002 Financial Reporting - Southern Cross University PORTFOLIO Question OneHome Office Inc is a large stationery retail store specializing in office supplies- Anthony Vella, the assistant manager, is in the process of budgeting monthly supplies expense for 2022- He assumes that in some way supplies expense is related to sales, either in units or in dollars- He has collected these data for sales and supplies expenses for January 2020 through to December 2021, and has estimated sales for 2022- These are shown on the next page- Required:A- Develop the regression that Anthony should use based on the data, and evaluate the reliability and precision of the regression you have chosen- B- Using the regression that you have chosen, predict the monthly expenses for 2022-     Date   Supplies Expense     Sales -Units-     Sales -Dollars- January-20 2,310 212 $            19,990 February-20 2,573 284 $            21,900 March-20 2,487 246 $            18,940 April-20 2,484 278 $            21,340 May-20 3,384 498 $            32,100 June-20 2,945 424 $            28,500 July-20 2,758 312 $            22,650 August-20 3,394 485 $            24,350 September-20 2,199 188 $            18,930 October-20 2,763 276 $            22,320 November-20 3,245 489 $            30,040 December-20                     4,576                         692 $            32,090 January-21 2,103 104 $            21,950 February-21 2,056 167 $            20,450 March-21 3,874 298 $            23,010 April-21 2,784 398 $            23,450 May-21 2,345 187 $            18,150 June-21 2,912 334 $            20,940 July-21 2,093 264 $            19,340 August-21 2,873 333 $            20,540 September-21 2,254 143 $            19,770 October-21 2,384 245 $            18,570 November-21 2,476 232 $            21,890 December-21                     3,364                         560 $            30,303 January-22   180 $            18,500 February-22   230 $            20,000 March-22   190 $            19,000 April-22   450 $            24,000 May-22   350 $            21,250 June-22   350 $            23,000 July-22   450 $            25,000 August-22   560 $            30,000 September-22   300 $            24,500 October-22   300 $            25,000 November-22   450 $            32,000 December-22   600 $            33,500 Question Two SecretLab, Inc-, produces two types of gaming chairs: Overwatch and Cyberpunk- Their biggest seller is the Overwatch, but they have been concerned about the recent decline in their market share for the Overwatch- SecretLab utilises a simple costing system- The company's simple costing system has two direct cost categories -material and labour- and one indirect cost pool- The simple costing system allocates indirect costs on the basis of machine-hours- Information related to SecretLab's production for the most recent year follows:   Overwatch Cyberpunk Units sold 3,200 1,800 Selling price $     125 $    200 Direct material cost per unit $       30 $      45 Direct manufacturing labour cost per hour $       16 $      16 Direct manufacturing labour hours per unit 1-50 2-25 Production runs 40 85 Material moves 72 168 Machine setups 45 155 Machine-hours 5,500 4,500 Number of inspections 250 150 The owners have heard of other companies in the industry that are now using activity based costing and are curious how ABC would affect their product costing decisions- After analysing the indirect cost pool for SecretLab, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection and marketing- SecretLab collected the following data related to the indirect cost activities- Activity Activity cost Activity Cost Driver Production scheduling $95,000 Production runs Material handling $45,000 Material moves Machine setup $25,000 Machine setups Assembly $60,000 Machine hours Inspection $8,000 Number of inspections Marketing costs were determined to be 3% of the sales revenue for each type of chair- Required:A- Calculate the cost of an Overwatch and a Cyberpunk chair under the existing simple costing system -per unit cost-- B- Calculate the cost of an Overwatch and a Cyberpunk chair under an Activity Based Costing system -per unit cost-- C- Compare the costs of the chairs in requirements A and B- Why do the two systems differ in the cost of an Overwatch and a Cyberpunk chair???? D- How can SecretLab use the new cost information from the ABC system to address the declining market share for Overwatch chairs???? Question Three Nudie Company started operation in 2020- The company manufactures mineral salt for swimming pools that it sells online by the box, at $50 per box- Nudie uses an actual costing system, which means that the actual costs of direct materials, direct labour, and manufacturing overhead are entered into the work-in-process inventory- The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production -in units- to compute the application rate-Information for Nudie's first two years of operation is as follows:   2020 2021 Sales -in units- --------------------------------------------------------------------- 2,500 2,500 Production -in units- ----------------------------------------------------------- 3,000 2,000 Production costs:     Variable manufacturing costs -------------------------------------- $21,000 $14,000 Fixed manufacturing overhead ----------------------------------- 42,000 42,000 Selling and administrative costs:     Variable ---------------------------------------------------------------------------- 25,000 25,000 Fixed --------------------------------------------------------------------------------- 20,000 20,000 Nudie Company had no beginning or ending work-in-process inventories for either year- Required:A- Prepare operating income statements for both years based on absorption costing- B- Prepare operating income statements for both years based on variable costing- C- Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements A and B- Question Four Hyper Sports Inc- is a manufacturer of sports uniforms- Among the uniforms they produce are jerseys for the girls netball teams of Rockingham and Mandurah- The company uses fabric to create the jerseys and sews on a logo patch purchased from a licensed store-Details of the teams are as follows: - Rockingham, with teal jerseys and the Rockingham logo- Mandurah, with red jerseys and the Mandurah logo The budgeted direct cost inputs for each product in 2022 are as follows:   Rockingham Mandurah Teal fabric 2 metres 0 Red fabric 0 2-5 metres Rockingham logo patches 1 0 Mandurah logo patches 0 1 Direct manufacturing labour 3 hours 4 hours Data pertaining to the direct materials for April 2022 are as follows: Actual Beginning Direct Materials Inventory, April 1, 2022   Rockingham Mandurah Teal fabric 18 metres 0 Red fabric 0 7 metres Rockingham logo patches 45 0 Mandurah logo patches 0 60 Target Ending Direct Materials Inventory, April 30, 2022   Rockingham Mandurah Teal fabric 16 metres 0 Red fabric 0 16 metres Rockingham logo patches 25 0 Mandurah logo patches 0 25 Unit cost data for direct cost inputs pertaining to March 2022 and April 2022 are as follows:   March -Actual- April -Budgeted- Teal fabric -per metre- $        9 $        10 Red fabric -per metre- 12 11 Rockingham logo -per patch- 7 7 Mandurah logo -per patch- 6 8 Manufacturing labour cost per hour 26 27 Manufacturing overhead -both variable and fixed- is allocated to each jersey based on budgeted direct manufacturing labour hours per jersey- The budgeted variable manufacturing overhead rate for April 2022 is $16 per direct manufacturing labour hour- The budgeted fixed manufacturing overhead for April 2022 is $14,640- Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods- Data relating to the finished goods inventory for April 2022 are as follows:   Rockingham Mandurah Beginning inventory, in units 12 17 Beginning inventory, in dollars -cost- $    2,244 $ 4,284 Target ending inventory, in units 22 27 Budgeted sales for April 2022 are 130 units of Rockingham jerseys and 190 units of Mandurah jerseys- The budgeted selling prices per unit in April 2022 are $229 for the Rockingham jerseys and $296 for the Mandurah jerseys- Assume the following in your answer:• Work-in-process inventories are negligible and ignored-• Direct materials inventory and finished goods inventory are costed using the FIFO method-• Unit cost of direct materials purchased and finished goods are constant in April 2022- Required:Prepare the following budgets and computations for April 2022:a- Revenues budgetb- Production budget in unitsc- Direct materials usage budget -in units and dollars-d- Direct materials purchases budgete- Direct manufacturing labour costs budgetf- Manufacturing overhead costs budget-g- Fixed manufacturing overhead rate for April 2022-h- Ending inventories budget -direct materials and finished goods- -in dollars-i- Cost of goods sold budget Attachment:- Portfolio Requirements-rar

Most Recent Questions


Helping Students for Excellence in Academics, GET Help with Assignment? Order Now