Accounting Answers

An investor would like to invest in orange juice production and he would like to know how
much it will cost to produce a box of orange juice. He has shared a YOUTUBE clip of
another orange juice production company to help with this activity.
https://www.youtube.com/watch?v=T8KJGtMGMSY
REQUIRED:
From the clip and do the following: -
a. Define and identify the cost object
b. Identify and discuss all cost elements of orange juice production
c. From (b) above, classify all elements of cost into direct and indirect cost and justify
your answer. For example, Testers testing the quality of orange juice are direct
labours because they are directly involved in the ensuring the quality of orange juice.
d. Which product-costing system best describe orange juice production, justify your
answer.

COST ACCOUNTING AFU07408 -Individual project (15 marks)
JUNE 2020
An investor would like to invest in orange juice production and he would like to know how
much it will cost to produce a box of orange juice. He has shared a YOUTUBE clip of
another orange juice production company to help with this activity.
https://www.youtube.com/watch?v=T8KJGtMGMSY
REQUIRED:
From the clip and do the following: -
a. Define and identify the cost object
b. Identify and discuss all cost elements of orange juice production
c. From (b) above, classify all elements of cost into direct and indirect cost and justify
your answer. For example, Testers testing the quality of orange juice are direct
labours because they are directly involved in the ensuring the quality of orange juice.
d. Which product-costing system best describe orange juice production, justify your
answer.

Which statement about QuickBooks' audit trail feature is true?
A. It tracks changes to lists.
B. It tracks changes to transactions.
C. It tracks changes to both lists and transactions.
D. It does not track changes to either lists or transactions.
Explain why the answer is correct.

When closing the books, if the balance in the Income Summary account is a credit, the company has experienced a(n):
A. net income
B. net loss
C. exact zero balance
D. None of these options
Explain why the answer is correct.

What does the inclusion of a Cost of Goods Sold section in a Profit & Loss report indicate about a business?
A. It likely deals with inventory.
B. It likely deals strictly in service items.
C. It is likely a not-for-profit organization.
D. None of these; all P&L reports show this section.

As Carlos is closing the books for his small business at the end of the fiscal year, he notices a mistake on a transaction from several months ago. He can't fix it by adjusting the original transaction, because several other transactions and reports depend on that transaction. What should Carlos do?
A. He should make a general journal entry to move the money.
B. He should make a Correction Invoice and move the money.
C. He should write a check to pull the money from an Equity account to where it needs to be.
D. None of these; he'll have to adjust the original transaction.
Explain why the answer is correct.

At the end of the year, where is all net income or loss transferred?
A. Fixed Asset
B. Retained Earnings
C. Equity
D. Assets and Liabilities
Explain why the answer is correct.

What type of transaction do you create to enter depreciation?
A. Liability
B. Accounts payable
C. Journal entry
D. Long term liability
Explain why the answer is correct.

A general journal entry is made for what reason?
A. Record end-of-year fixed asset depreciation
B. Adjust an inventory quantity
C. Adjust owner's equity
D. Any of these options
Explain why the answer is correct.