Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Accounting Expert

QUESTION 1-

Jumbo Giant Limited manufactures three products, namely, Milk, Yoghurt and Ice-cream. The initial joint cost of production is $600,000 for the year. This cost results in an output of 2,000,000 litres.

Details relating to the 3 joint products are given below:

 

Milk

Yoghurt

Ice-cream

Quantity at split-off point

1,000,000 litres

400,000 litres

600,000 litres

Selling price at split-off point

$ 1.00 per litre

$ 2.00 per litre

$ 3.00 per litre

Separable cost

$ 0.50 per litre

$ 1.25 per litre

$ 1.50 per litre

Sales price of ultimate product

$ 5.50 per litre

$ 4.00 per litre

$ 9.00 per litre

REQUIRED:

1. Allocate the joint cost between Milk, Yoghurt and Ice Cream using:

a) The Physical Units Method.

b) The Relative Sales Value Method. Round percentage to 2 decimal places.

c) Net Realisable Value Method. Round percentage to 2 decimal places.

2. Jumbo Giant Limited has a request from a prospective customer to further process all its Ice Cream production into Gourmet Ice Cream which will then be bought by the customer for $12.00 per litre. This will increase the separable costs of ice cream per litre to $2.60.

Would you advise the company to accept the offer? Why or why not?

QUESTION 2-

Mighty Mouse Limited estimates the following information for October 2016:

Sales (Units): 22,000

Inventory - 1st October 2016: 9,000

Inventory - 31st October 2016: 7,500

The company's inventory policy requires ending inventory to be equal to 25% of the prior month's sales.

The company predicts sales to increase by 5% in November. December is a slow month and sales are estimated at 70% of November sales.

The cost price per unit is $5.00 and this expected to increase by 10% in December.

REQUIRED: Prepare a purchases budget in units and dollars for the quarter ending 30th December 2016.

QUESTION 3-

Fussy Hair Ltd has decided to prepare a cash budget for the quarter ending 30st September 2016. Services are provided on 30 day credit terms. As at 1 July 2016, the Cash at bank ledger account had a debit balance of $500,000.

The following estimates have been made for the next three months:

 

July

August

September

Sales

200,000

300,000

400,000

Cash purchases

150,000

140,000

160,000

Cash wages

15,000

20,000

28,000

Depreciation on plant

80,000

80,000

80,000

Electricity expenses

10,000

11,000

11,500

Insurance expenses

36,200

36,200

37,000

Loan repayment

0

20,000

20,000

All sales are on credit.

It is expected that debtors will pay their accounts as follows:

  • 50 per cent in the month following the sale.
  • 20 per cent in the second month following the sale.
  • 30 per cent in the third month following the sale.

Actual sales for the previous three months were as follows:

  • $300,000 in April 2016
  • $290,500 in May 2016
  • $320,000 in June 2016

Electricity expenses and insurance expenses are paid the following month after they are incurred. June expenses were as follows:

  • Electricity expenses $8,000
  • Insurance expenses $35,000

REQUIRED:

Part A: Prepare a schedule of cash receipts from debtors for the period ending 30th September 2016.

Part B: Prepare a Cash budget for the Quarter ending 30th September 2016.      

QUESTION 4-

Terrific Tables Pty Ltd incurred the following costs to produce job number TB300, which consisted of 500 office desks.

Direct material:

1 June Requisition no. 520: 900 metres of timber @ 8.00 per metre

18 June Requisition no. 101: 600 metres of steel @ $0.20 per metre

Direct labour:

18 June Timesheet no. 72 500 hours@$14 per hour

Manufacturing overhead:

Applied on the basis of direct labour hours @$12 per hour

Additional information:

Job TB300 was completed on 18 June.

REQUIRED: Prepare a job cost sheet and record the information given above and also a cost summary for job TB300.

Managerial Accounting, Accounting

  • Category:- Managerial Accounting
  • Reference No.:- M91767130

Have any Question? 


Related Questions in Managerial Accounting

Venus brewery is a craft brewery that produces a special

Venus Brewery is a craft brewery that produces a special light beer for ladies. The beer are processed sequentially in two departments (Department X and Department Y) before the final products are transferred to the fini ...

Managerial accounting assignment questionwidget airlines is

Managerial Accounting Assignment Question Widget Airlines is a leading business in travelling industry and has experienced turbulent times during the past 10 years due to stiff competition and as a result of global slowd ...

Managerial accounting assignmentanswering the questions and

Managerial Accounting Assignment Answering the questions and compiling your answers into a word processing document. 1. The work in process inventory account of a manufacturing company shows a balance of $3,000 at the en ...

Exercise- estimating cost behaviorhigh-low methodjonathan

Exercise- Estimating Cost Behavior;High-Low Method Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several mont ...

Question wmtb is an independent television station run by a

Question: WMTB is an independent television station run by a major state university. The station's broadcast hours vary during the year depending on whether the university is in session. The station's production crew and ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Wyoming community college has three divisions liberal arts

Wyoming Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's De ...

Instructionsall assignments must be typed in a minimum 11

Instructions: All assignments must be typed in a minimum 11 font size into the assignment template question sheet (available on Moodle). Additional pages may be added as needed. There is no word limit, but be guided by t ...

Managerial accounting budgeting project- springthe

Managerial Accounting Budgeting Project- Spring The following is a Comprehensive Budgeting Problem. You and your team need to prepare a partial Master Budget and then continue on to analyze your data. This is an Excel ba ...

Analysis last year pjs ice cream parlors inc reported an

Analysis Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12.0%. The firm's debt ratio was 40%, sales were $25 million, and the capital intensity ratio was .75 times. What is the net income for PJ's last year? ( ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen