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

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.

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

Sunshine Tours is a travel agency specializing in flights between Toronto and Jamaica.

It books passenger on Canadian air and charges passengers $1,000 per round-trip ticket.

Sunshine’s fixed costs are $22,000 per month. Its variable costs per ticket, including a delivery

fee is $18 (assume each ticket is purchased in a separate package. Thus the delivery fee applies

to each ticket)

Maryland International College Page 3

Required: -

1) What number of tickets Sunshine must sell each month to

a) Break even

b) Make a target operating income of $10,000

2) Assume another company, TNT Express, offers to charge Sunshine only $12 per ticket.

How would accepting this offer affect your answer to (a) and (b) in requirement 1?

The following data are obtained from the records of a factory

Sales (40,000 units @ Br. 25 each) ………… Br. 100,000

Less: Variable Costs………………………… 70,000

Contribution Margin ……………………….. 30,000

Less: Fixed Costs …………………………… 18,000

Net Profit …………………………………… 12.000

Required: Compute:

1) The number of units by selling which the company will neither loss or gain anything

2) The sales needed to earn a profit of 20% on sales

3) The extra units which should be sold to obtain the present profit if it is proposed to

reduce the selling price by 25%

4) The selling price to be fixed to bring down its break-even point to Br.500 units under

present condition