ACC 320

Assignment 1 for ACC 320

Question 1

Answer these question in less then 3-4 lines except question 1 [a little longer]

  1. Example of assignment with answer

    The following information pertains to the York Company for the year ending December 31, 2020

    $
    Sales 840,000
    Purchases of raw materials 220,000
    Indirect Labour 14,000
    Indirect Materials 9,000
    Depreciation of factory equipment 50,000
    Depreciation of factory buildings 29,000
    Depreciation of admin buildings 15,000
    Marketing costs 130,000
    Direct Labour 110,000
    Raw materials inventory Dec 31 2020 22,000
    WIP Jan 1 2020 54,000
    Sales Return/ allowances 17,000
    Raw Materials Jan 1 2020 33,000
    WIP Dec 31 2020 45,000
    Sales Discounts 12,000
    Finished Goods Inventory Jan 1 2020 124,000
    Finished Goods Inventory Dec 31 2020 115,000

    REQUIRED

    1. Prepare a COGM statement
    2. Prepare an income statement [ assume interest expense to be $13000 and tax rate to be 25%]

    Table 1

    Name of company : York Company

    Statement of COGM

    Date : Dec 31, 2020

    Direct Materials $ $
    Beginning Inventory of RM 33000
    Add Purchases of RM 220,000
    Cost of RM available for sale 253,000
    Less: Ending Inventory for RM (22,000)
    Direct materials used 231,000
    Direct Labour 110,000
    Manufacturing Overhead
    Indirect Materials 9,000
    Indirect Labour 14,000
    Depreciation of factory equipment 50,000
    Depreciation of factory buildings 29000
    Manufacturing overhead 102,000
    Manufacturing cost 443,000+
    ADD : Beginning work in Process [WIP] 54,000
    Total Manufacturing costs 497,000
    LESS : Ending WIP (45000)
    COGM 452,000

    Explanation of Abbreviations

    RM = Raw Material

    ( ) = –

    INCOME STATEMENT

    Name of company: York Company

    Statement of income Statement

    Date : Dec 31,2020

    $ $
    Total Sales Or Revenue 840,000
    LESS: sales return and allowances (17,000)
    Sales Discount (12000)
    Net Sales 811,000
    Cost Of Goods Sold [COGS]
    Beginning finished goods 124,000
    ADD : COGM 452,000
    Goods available for sale 576,000
    Less: Ending Finished Goods (115,000)
    COGS (461,000)
    Gross Profit 350,000
    Less: Operating Expenses
    Selling Expenses 130,000
    General & Administration cost 15000
    Total operating expenses (145,000)
    Operating Income [EBIT] 205,000
    Interest Expense (13,000)
    Profit before tax [EBT] 192,000
    Tax (48000)*
    Net Income 144,000

    Working:

    Tax* = EBT x Tax rate = 192000 x 0.25 = 48,000

  2. What are the three management functions that management accounting information can be used to make them become more effective? Explain each very briefly.
  3. Explain what is the process of control?
  4. Why is feedback necessary in management process?
  5. What does Total Quality management emphasize [or put stress on]?
  6. What are the two factors that can prevent a manager to maximize profit ?
  7. Give an example of (a) planning (b) decision making
  8. What is employee empowerment ?
  9. How can ethical conduct improve profitability of a company

Question 2

The following information pertains to the York Company for the year ending December 31, 2019.

$ Hours
Revenue 240,000
Interest Revenue 50,000
Purchases of raw materials 40,000
Indirect Labour 4,000
Indirect Materials 9,000
Utilities [factory] 4,500
Depreciation of factory equipment 10,000
Depreciation of factory buildings 19,000
Depreciation of admin buildings 5,000
Marketing costs 30,000
Wages [Store] 10,000
Utilities [store] 6,000
Supplies [store] 3,500
Direct Labour Hours 2000
Hourly Rate for direct labour 10
Raw materials inventory Dec 31 2019 9,000
WIP Jan 1 2019 4,000
Sales Return/ allowances 10,000
Raw Materials Jan 1 2019 3,000
WIP Dec 31 2019 15,000
Sales Discounts 10,000
Finished Goods Inventory Jan 1 2019 7,000
Finished Goods Inventory Dec 31 2019 15,000

REQUIRED

  1. Prepare a COGM statement
  2. Prepare an income statement [ assume interest expense to be $10000 and tax rate to be 15%]

 

 

EXAMPLE CARRIED OUT

 

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