Accounting for Success | My Assignment Tutor

Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 1Topic 9 – Tutorial 2 Questions1. Bob Peoples, and his two children (sometimes referred to as B 1 & B 2), operate amanufacturing business called – Peoples’ Pyjamas.Accounting records as at Dec 31 20X2 are listed under his pyjamas.Inventories as at 1 January 20X2 $ $Raw Materials 35,000Work in Process 40,000Finished Goods 160,000Account Balances as at 31 December, 20X2Direct Labour 310,000Selling Expenses 145,000Machine Repairs & Maintenance 34,000Insurance – Machines 28,000Power & Light – Factory 16,000Indirect Labour – Foreperson- (Bobby Banana) 150,000Indirect Labour – Factory Cleaning Staff Wages 25,000DepreciationPlant and Equipment 40,000Factory Building 60,000General Office Block 32,000Council Rates * 40,000Raw Materials Purchases 150,000Land Tax + 30,000Electricity – General Office Block 7,000Executive Salaries 200,000Transport In – Raw Materials 8,000Interest Expense 25,000Sales Revenue 1,500,000Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 2Inventories at 31 December 20X2 Raw Materials25,000Work in Process45,000Finished Goods175,000 * Bob Peoples allocates 70% of Council rates to factory costs+ Bob Peoples allocates 60% of Land Tax to factory costsBob Peoples pays Income Tax at 30% (his two children pay nothing!!!)Required:a) Prepare a Manufacturing Statement for the year ended 31 December 20X2b) Prepare an Income Statement for the year ended 31 December 20X2Bobs’ Children (B 1 & B 2)Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 3PEOPLES’ PYJAMASManufacturing Statement for period ended 30 June 20X2 $$ Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 4PEOPLES’ PYJAMASIncome Statement for period ended 30 June 20X2 $$ Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 52. Define the followings terms, using practical examples in each definition:a) raw materials____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________b) work-in-process____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________c) finished goods____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________d) direct labour____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________e) indirect labour____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________f) manufacturing (factory) overheads____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 63. Explain the difference between a service business; a merchandising (retail) business;and; a manufacturing business.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 74. Using the following information related to the manufacturing business of HunchbackBackpacks (owner – Kwozzi Modo):Required: prepare a properly classified Manufacturing Statement for the year ended 30 June20X2prepare an Income Statement for the year ended 30 June 20X2 Balances as at 30 June 20X2 $Inventories (1 July 2011)Finished Goods12 000Work in Process10 000Raw materials5 000Inventories (30 June 20X2)Finished Goods14 000Work in Process9 000Raw materials4 000Manufacturing overheads50 000Direct labour33 000Indirect (factory) labour6 000Direct raw materials purchases18 000Office salaries8 000Sales persons salaries18 000Furniture & Fittings8 000Accumulated depreciation of Furniture & Fittings800Motor Vehicles25 000Accumulated depreciation of Motor Vehicles10 000Accounts Receivable5 000Factory Machines50 000Accumulated depreciation of Factory Machines10 000Insurance on Factory Machines4 000Sales returns1 000Sales Income200 000Accounts Payable16 000General office expenses7 000Rental expense of administration block5 000Kwozzi Modo – Drawings6 000Cash at Bank12 000Commission received1 000Kwozzi Modo – Capital (1 July 2011)100 000 ** See next page for additional informationAccounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 8Additional Information: Insurance on Factory Machines paid in advance – $ 1 000Company Income Tax to be paid at 30% (to the nearest dollar)Depreciation to be charged for the current financial year:oFurniture & Fittings – 5% p.a. on cost o Motor Vehicles – 20% p.a. on costo Factory Machines – 10% p.a. on costHUNCHBACK BACKPACKSManufacturing Statement for period ended 30 June 20X2 $$ Accounting for Success – Tutorial 2 WorkbookACC10010 – Accounting for SuccessTopic 9 Tutorial 2 Questions Page 9HUNCHBACK PACKBACKSIncome Statement for period ended 30 June 20X2 $$

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Leave a Reply

Your email address will not be published. Required fields are marked *