Accounting Answers

The Beach Comber is a takeout food store at a popular beach resort. Susan Sexton,

owner of the beach comber, is deciding how much refrigerator space to devote to four different

drinks. Pertinent data on these four drinks are as follows

Cola Lemonade Punch Natural

Orange

Juice

Selling price per case $18.00 $19.20 $26.40 $38.40

Variable cost per case $13.50 $15.20 $20.10 $43.20

Cases sold per foot of shelf space per day 25 24 4 5

Sexton has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a

minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink.

Required:

1) A Co-worker of Sexton recommends that she can maximize the shelf space devoted to

those drinks with the highest contribution margin per case. Evaluate this recommendation

2) What shelf space allocation for the four drinks would you recommend for the beach

comber? Show your calculations

Assume the following account balances (in thousands) for Guma Company, a

manufacturing firm

Beg.of. 2020 End of 2020

Direct Material Inventory Br. 22,000 Br. 26,000

Work in process inventory 21,000 20,000

Finished Goods Inventory 18,000 23,000

Purchase of direct materials 75,000

Direct Manufacturing Labor 25,000

Indirect Manufacturing Labor 15,000

Insurance on Factory Property 9,000

Depreciation – Factory Building and Equipment 11,000

Factory Utilities 4,000

Marketing, Distribution, and Customer Service Costs 93,000

General and Administrative Costs 29,000

Required:

1) Prepare a schedule of cost of goods manufactured for 2020

2) If revenues for 2020 were 300 million, prepare income statement

Sarah has the following assets and liabilities on the 1st of February 2021

Accounts payable-$7,000 Accounts receivable-$6,000

Machinery-$60,000 Cash at bank-$29,000

Motor vehicle-$65,000 Cash in hand-$3,000

Inventory-$10,000 Capital-$166,000

On 2nd February 2021 the following transactions took place

1) Purchased goods $2000 by cash.

2) Paid the creditors $700 by cheque.

You are required to prepare the statement of financial position of Sarah using the vertical format on the 2nd of February 2021,after the above transactions have taken place.

Complete the columns to show the accounting effects of the following transactions.

Transactions Assets Liabilities Capital

Owner introduced capital $6,000 by bank

Sold goods on credit to James $6000

Purchased goods $2,800 by cash.

Obtained a loan from Nuwan$4,000by cash.

Bought furniture’s for $3,000 by cheque

The accountant of Pink Lady Company was tasked to perform monthly bank reconciliation. She downloaded the company's October 31 bank statement that showed a balance of P64,800. She also printed the cash ledger from the company's computerized accounting system. It states an ending balance of P16,700. She also found the following items:

a. The bank statement showed bank service charge of P1,600.

b. The bank collected P3,000 from a note receivable for PX Manufacturing. P500 was charged as a collection fee.

c. Deposits in transit, P102,000.

d. Checks outstanding on November 30, P 158,200.

e. The accountant found a check issued to Oragon Corporation for P9,000 that cleared the bank but was not in the ledger.

Kd ltd began trading with an issued share capital of 6000000 ordinary shares. The issue price was 50 cents each. On 30 June 20.1 the end of the previous financial year ,the retained income account reflected a balance of 320000

On 31 December 20.1 ,after six months of trading in the current financial year, the first provisional tax payment of 105000 was made interim dividends of 2 cents per share were paid on that date.

At the end of the second accounting period on 30 June 20.2, the second provisional tax payment of 105000 was made.

After completion of the audit ,net profit for the year was calculated to be 720000, and the total income tax for the year was calculated to be 216 000 the directors authorized a final dividend of 5 cents per share

Required

Draft the following accounts in the ledger

Retained income

Shareholders for dividends

Dividends on ordinary shares

SARS (income tax)

Income tax

Appropriation account

ft ltd is registered with an authorized share capital of 250000 ordinary shares. all shares were issued and the issue price was 20R each the company began business on the 13 September 20.1

On 28 February 20.2(end of the first accounting period) the profit an loss account reflected net profit of 302000. Income tax is calculated at 30% of net profit.no dividends were declared

1: prepare journal entries for the adjustment and closing transfers

2:post to the ledger

Discuss how to activate your learning mindsets for accounting information systems. The nature of accounting information systems is social technology at work in the accounting area. (e.g., MS Access, MS Power BI). Unlike qualitative questions, you cannot run the result with technology if you only understand 90% of the application knowledge.Technical knowledge is only one part of the solution, and we need to learn how to work with technology in a team for practical solutions.

If you can design a general-purpose AIS, even if it is simple, you know how to use some much more complicated AIS. There are at least 20 different AIS systems in the market. You can handle any system after you learned how to design a system. In addition, social technology also requires superior solutions and emphasizes user-driven criteria and diverse voices. Help you understand design thinking and how it works:

https://hbr.org/2018/09/why-design-thinking-works (Links to an external site.).

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Latin Corporation’s breakeven point in revenues is $1,000,000 and fixed costs is

$400,000

Required:

1) Compute the contribution margin ratio

2) Compute the selling price if variable costs are $12 per unit

3) Suppose 80,000 units are sold, compute the margin of safety

Reno Company manufactures part No.498 for use in production line. The

manufacturing costs per unit for 20,000 units of part No.498 are as follows:

Direct materials $6

Direct Manufacturing Labor $30

Variable Manufacturing Overhead $12

Fixed Manufacturing Overhead Allocated $16

Total Manufacturing Costs Per Unit $64

Tray Company has offered to sell 20,000 units of part No.498 to Reno for $60 per unit. Reno

will make the decision to buy the part from Tray if there is an overall savings of at least $25,000

for Reno. If Reno accepts Tray’s offer, $9 per unit of fixed overhead allocated would be totally

eliminated. Furthermore, Reno has determined that the released facilities could be used to save

relevant costs in the manufacture of part No.575. For Reno to achieve an overall saving of

$25,000, how much is the amount of relevant cost that would have to be saved by using the

released facilities in the manufacture of part No.575