accounting assignment homework help<\/a>\u00a0 complete were on hand, while 1 150 benches were on hand on 30 April 2022 which were 40% complete.
\nManufacturing of 2 910 benches have been commenced with during April 2022, while 2 788 benches have been completed during this period.
\nHeath Felt employs a first-in-first-out (FIFO) costing method.
\nThe following costs have been incurred:
\nR
\nMaterial cost of units as at 31 March 2022 100 060
\nConversion cost of units as at 31 March 2022 230 400
\nWood purchased during April 2022 790 000
\nNails purchased during April 2022 18 200
\nCarpenters\u2019 wages for April 2022 188 000
\nInspector\u2019s salary for April 2022 26 000
\nCleaners\u2019 remuneration for April 2022 12 000
\nWater and electricity for April 2022 6 000
\nDepreciation for April 2022 23 400
\nRequired:
\nPrepare the process report (including the cost allocation statement) for Heart Felt (Pty). Ltd. on 30 April 2022.
\nRound to two decimals where required.
\nRemember, quantities are expressed as integers (whole numbers).
\n(63 marks)
\nAligns to SAICA competencies:
\nC1.2 Decision-making based on budgeting and expenditure forecasting
\na) Understand the budgeting and expenditure forecasting processes which translate the organisation\u2019s business strategy into financial targets and tactical plans and that can be executed in a risk-controlled manner
\nb) Use effective and consistent modelling, planning and forecasting processes across business unit(s) to benchmark performance and trends for decisionmaking
\nQUESTION 2 (37 marks)
\nEase Ltd. (\u201cEase\u201d) is a luggage manufacturer in KwaZulu-Natal which manufactures various leather handbags. Amongst their famous handbags, is an everyday, allpurpose handbag called \u201cJane\u201d.
\nEase\u2019s financial year-end is 31 May and proceeding into the last month of the 2022 financial year, Ease\u2019s management accounting department had budgeted the following figures for Jane-handbags manufactured in May 2022:
\nNature of cost, given per Janehandbag Cumulative total for Jane-handbags manufactured
\nLeather (R150 per meter) R9 180
\nThread (3.4 meters) R289
\nHandbag-stitcher\u2019s wage (R140 per hour) R52 360
\nQuality inspector\u2019s monthly salary allocated to Jane-handbags R6 800
\nTotal R68 629
\nOnce a stitcher has made a handbag, it is inspected by the quality inspector to ensure that all handbags meet Ease\u2019s standards. The quality inspector is paid a monthly salary of R24 000. This salary is allocated to the various handbags manufactured, based on the quantity of handbags manufactured. It was estimated that during May 2022, a total of 120 handbags will be manufactured by Ease of which 34 will be Janehandbags.
\nOn 5 June 2022 when the May 2022 results were compiled in order to draft the financial statements for the 2022-financial year, the following were determined:
\n\u2022 32 Jane-handbags and a total of 120 of all handbags have been manufactured.
\n\u2022 The total cumulative leather cost for Jane-handbags was R8 448 and that 1.65 meters of leather were used per handbag.
\n\u2022 Because the handbag-stitchers agreed they will be working as efficient as possible with the leather, their hourly wages were increased. This resulted in them being paid a total of R52 096 for the Jane-handbags manufactured during May 2022. Their hours required to make a Jane-handbag remained the same as budgeted.
\n\u2022 The actual thread for the Jane-handbags amounted to R3 per Jane-handbag.
\nThe same quantity of thread per handbag was used as budgeted.
\n\u2022 The quality inspector\u2019s actual salary was the same as budgeted.
\nRequired:
\n2. Calculate the following variances for Jane-handbags in May 2022:
\n2.1. Direct material price variance
\n2.2. Direct material usage variance
\n2.3. Total direct material variance
\n2.4. Direct labour rate variance
\n2.5. Variable overhead rate variance
\n2.6. Fixed manufacturing overhead volume capacity variance
\nRound to two decimals where required.
\n(37 marks)
\nAligns to SAICA competencies:
\nDecision-making based on budgeting and expenditure forecasting
\nAnalyse the organisation\u2019s actual performance (using financial and non- financial information) against the budgeting and expenditure forecasting information to interpret variances for decision-making
\nC1.3 Decision-making based on internal cost allocation and transfer pricing options
\na) Evaluate key business processes with regard to costs and income allocation to identify performance issues<\/p>\nHIGHER EDUCATION PROGRAMMES
\nAcademic Year 2022: January – June
\nFormative Assessment 2: Financial Accounting for Companies
\n(IFRS) (HFAC231-1)
\nNQF Level, Credits: 6, 14
\nWeighting: 15%
\nAssessment Type: Open book
\nExaminer: S. Khan
\nEducator S. Khan
\nDue Date: 6 May 2022
\nTotal: 100 marks
\nInstructions:
\n\u2022 This assignment consists of three (3) questions.
\n\u2022 It is based on units 5-8 (Chapters 3, 4, 11) of your textbook.
\n\u2022 All the questions are compulsory.
\n\u2022 SHOW ALL CALCULATIONS
\n\u2022 The SAICA Competency Framework Reference at the end of a question is for recordkeeping and will inform you which SAICA Competency is covered in the question.
\nQUESTION 1 (40 marks)
\nBuilding Bricks Limited is a manufacturer who operates in the construction industry and manufactures as well as sells concrete bricks. The following information is available for the Month of January 2022:
\na) Building Bricks Limited uses the perpetual inventory recording method for all types of inventory.
\nb) Production (manufacturing) of bricks is started only after receiving a confirmed sales order.
\nc) The main raw material used in the production of the bricks is cement.<\/p>\n
Effective and consistent modelling, planning, and forecasting processes across business unit(s) are used to benchmark performance and trends for decision-making purposes.
\nQUESTION NO. 2: (37 marks)
\nEase Ltd. (“Ease”) is a KwaZulu-Natal-based luggage manufacturer that specializes in the production of leather handbags of various styles. One of their most well-known handbags is the “Jane,” which is a practical everyday purse that can be used for many things.
\nJane-handbags created in May 2022 were budgeted at the following values by Ease’s management accounting department as of the conclusion of the company’s fiscal year on May 31, 2022, which was the last month of the company’s fiscal year.
\nAccording to Janehandbag, the nature of the cost is as follows: Combined totals for Jane-handbags that have been created in leather (R150 per meter) Thread R9 180 R9 180 R9 180 R9 180 R9 180 Thread (3.4 meters) R289
\nWage for a handbag-stitcher (R140 per hour) R52 360 degrees
\nThe monthly wage of a quality inspector has been assigned to Jane-handbags. R6 800 R68 629 R6 800 R68 629
\nFollowing the completion of a handbag by a stitcher, it is inspected by a quality inspector to verify that all handbags match the high standards set by Ease. The quality inspector is compensated with an R24 000 monthly wage. This compensation is divided among the different types of handbags that are created, according to the quantity of handbags that are manufactured. It is anticipated that Ease would create a total of 120 handbags during the month of May 2022, of which 34 will be Janehandbags.
\nWhen the results of the month of May 2022 were collated in order to produce the financial accounts for the fiscal year 2022, the following conclusions were reached:
\n\u00b7 A total of 120 handbags, including 32 Jane-handbags, have been produced. \u2022 The overall cumulative leather cost for Jane-handbags was R8 448 and 1.65 meters of leather were used per handbag. \u2022 The total cumulative leather cost for all handbags was R8 448.
\n\u2022 Hourly rates for handbag stitchers have been raised in recognition of their agreement to use all available resources to maximize their efficiency when working with leather. As a result, they were paid a total of R52 096 for the Jane-handbags that were created during the month of May 2022. The number of hours they needed to put in to construct a Jane-handbag stayed the same as previously planned.
\n\u2022 The real thread used in the Jane-handbags cost R3 per Jane-handbag, or R3 per bag.
\nThe same amount of thread per handbag that had been budgeted had been used.
\n\u2022 The real remuneration of the quality inspector was the same as the salary that had been budgeted.
\nRequired:
\nDetermine the following deviations for Jane-handbags in the month of May, 2022:
\n2.1. Variation in the price of raw materials
\n2.2. Variation in direct material consumption
\n2.3. Total direct material variance (in thousands of dollars)
\n2.4. Variation in direct labour rates
\nOverhead rate variance with a variable base rate
\n2.6. Variance in fixed manufacturing overhead volume and production capacity
\nRound to two decimals where required.
\n(37 marks)
\nConforms to the following SAICA competencies:
\nDecision-making based on budgeting and expenditure forecasting
\nAnalyse the organisation\u2019s actual performance (using financial and non- financial information) against the budgeting and expenditure forecasting information to interpret variances for decision-making
\nThe use of internal cost allocation and transfer pricing alternatives to guide decision-making in C1.3.
\na) Evaluate key business processes with regard to costs and income allocation to identify performance issues<\/p>\n
PROGRAMS FOR IMPROVING EDUCATION
\nAcademic Year 2022: January – June
\nFormative Assessment 2: Financial Accounting for Companies (IFRS) (HFAC231-1)
\nNQF Level, Credits: 6, 14
\nWeighting: 15%
\nAssessment Type: Open book
\nExaminer: S. Khan
\nEducator S. Khan
\nDue Date: 6 May 2022
\nTotal: 100 marks
\nInstructions: \u2022 This assignment consists of three (3) questions.
\n\u2022 It is based on units 5-8 (Chapters 3, 4, 11) of your textbook.
\n\u2022 All the questions are compulsory.
\n\u2022 SHOW ALL CALCULATIONS
\n\u2022 The SAICA Competency Framework Reference at the end of a question is for recordkeeping and will inform you which SAICA Competency is covered in the question.
\nQUESTION 1 (40 marks)
\nBuilding Bricks Limited is a manufacturer who operates in the construction industry and manufactures as well as sells concrete bricks. The following information is available for the Month of January 2022:
\na) Building Bricks Limited uses the perpetual inventory recording method for all types of inventory.
\nb) Production (manufacturing) of bricks is started only after receiving a confirmed sales order.
\nc) The main raw material used in the production of the bricks is cement.<\/p>\n
d) Opening inventory of cement was 200kg at R12 per kg at 1 January 2022.
\ne) The company only had the following cement inventory transactions\/occurrences during January 2022:
\nDate Description Quantity (Kg) Purchase price per kg in Rands
\n2 January Purchase 250 R11.20
\n14 January Purchase 250 R11
\n15 January Returns (Note 1) (50) –
\n18 January Destroyed (Note 2) (100) –
\n20 January Issued to the production of a batch of bricks for Order 003. See order 003 below. (200) –
\nNote 1: 50 kgs of the cement purchased on the 14th January was returned on the 15th January due to inferior quality
\nNote 2: Cement destroyed by rain on the 18th January had no scrap value and thus had to be written off on the same day.
\nOrder 003
\nBuilding Bricks Limited recorded the following costs to produce the batch of 10 000 bricks ordered in January 2022:
\nOrder 003 Cost in Rands
\nRaw materials (cement) used ?
\nSupervisor Salaries at the production plant 150 000
\nDirect labour hours (57 hours) 15 250
\nConsumables used e.g.sand, water 5 300
\nDepreciation of equipment used in production plant 70 000
\nOther variable costs 6 508
\nThe customer who made the order for bricks, Point Properties Ltd, later mentioned that they actually only need 75% of the order. The Financial Manager of Building Bricks Limited responded by saying that it is fine with them as they will keep the remainder of bricks in their inventory for other customers who might later order some bricks. Thus only 7 500 bricks were sold to Point Properties Ltd on the 30th January 2022.
\nBuilding Bricks Limited conducted a physical stock-count of completed bricks on hand at 31 January 2022 that found 2400 bricks were on hand whereas the inventory control account in the accounting records showed 2 500 bricks on hand.
\nREQUIRED:
\n1.1) Calculate the cost of the cement issued to the production of the batch of bricks on the 20 January and the value of the closing inventory of cement at the end of January assuming the entity uses the weighted average method for valuation of inventory (cement) because it is homogenous.
\nRound off to two decimal places. (26 marks)
\n1.2) Assuming that normal production hours per batch are 60 hours, determine the
\ncost per unit for this batch of 10 000 bricks (Order 003). (7 Marks)
\n1.3) Prepare the journal entry to correct the inventory control account as a result of the shortage of bricks identified by the stock count. Narrations and the date is
\nnot required. (4 marks)
\n1.4) On 31 January 2022, Building Bricks Limited determined that owing to the cheaper cost of bricks of a competitor, its own bricks can only be sold at R21.50 each. Determine the carrying amount of finished goods (bricks) in the statement of financial position of Building Bricks Limited at 31 January 2022 after taking all the information in the question into account.
\nSupport your answer with reasons from IAS 2. (3 marks)
\nAligns to SAICA competencies:
\nB1.2 Accounting information systems
\na) Maintain an accounting information system that is manual, automated or a combination of both.
\nD1.1 Financial reporting: in accordance with International Financial Reporting
\nStandards (IFRS)
\na) Prepare, analyse and evaluate general purpose financial statements in accordance with IFRS for an entity, which could be a for-profit entity, an SME, a public sector entity or a not-for-profit entity
\nQUESTION 2 (12 marks)
\nThe following information pertains to Sweet Tooth Ltd for the year ended 31 December 2021:
\na) Share capital as at 1 January 2021 was R 2 500 000. This refers to 2,5 million ordinary shares of R1 each that were in issue since incorporation.
\nb) On 1 June 2021, the public were invited to buy 500 000 ordinary shares at R2 per share regarding a new issue of shares. The directors further decided to underwrite the full share issue. The underwriting was done by Super Bank Ltd for an underwriting commission of R50 000.
\nBy the offer\u2019s closing date of 31 October 2021, the offer was oversubscribed for as 600 000 applications were received for the 500 000 shares. The shares were issued on the 1 November 2021. Share issue expenses (excluding the underwriter\u2019s commission) relating to the issue totalled R 65 000. The share issue expenses as well as the underwriter\u2019s commission were paid on the same day as the issue.
\nc) On the 31 December 2021, the directors of Sweet Tooth Ltd decided to reward its shareholders by declaring dividends of 20c per share. The dividends were still outstanding at 31 December 2021.
\nREQUIRED:
\nPrepare the journal entries to account for all the transactions in the books of Sweet Tooth Limited from all the information given in the question.
\nDates and narrations are not required for the journal entries. (12 marks)
\nAligns to SAICA competencies:
\nD1.1 Financial reporting: in accordance with International Financial Reporting
\nStandards (IFRS)
\na) Prepare, analyse and evaluate general purpose financial statements in accordance with IFRS for an entity, which could be a for-profit entity, an SME, a public sector entity or a not-for-profit entity
\nQuestion 3 (48 marks)
\nArabian Nights Ltd is a restaurant franchise that is known for its traditional d\u00e9cor and exotic cuisine. The following are extracts from Arabian Nights Ltd\u2019s Statement of Comprehensive Income as well as the Statement of Financial Position for the financial year ended 31 December 2021.
\nStatement of Financial Position of Arabian Nights Ltd at 31 December 2021
\nASSETS 2021 2020
\nNon-current assets 12 130 000 10 145 000
\nProperty, plant and equipment [see (b) below] 11 560 000 9 745 000
\nInvestments 570 000 400 000
\nCurrent assets 2 090 990 1 417 008
\nInventory 430 000 370 000
\nTrade and other receivables 27 000 30 000
\nPrepaid insurance 36 000 45 000
\nCash and cash equivalents 1 597 990 972 008
\nTotal assets 14 220 990 11 562 008
\nEQUITY AND LIABILITIES
\nEquity attributable to owners 13 740 768 10 994 000
\nShare Capital (R1 ordinary shares) [see (a) below] 10 340 000 10 000 000
\nRetained earnings 3 330 768 994 000
\nRAssessment Surplus [see (b) below] 70 000 0
\nTotal equity
\nCurrent Liabilities 480 222 568 008
\nTrade and other payables 124 000 345 000
\nCurrent tax payable 356 222 223 008
\nTotal liabilities 480 222 568 008
\nTotal equity and liabilities 14 220 990 11 562 008
\nExtracts from the Statement of Comprehensive Income (SCI) of Arabian Nights
\nLtd for the financial year ended 31 December 2021
\nProfit before tax ?
\nIncome tax expense 947 632
\nProfit for the year ?
\nAdditional information:
\na) Shares issued during the year were as follows:
\n\u2022 Bonus (capitalization) shares were issued in June 2021 to existing shareholders where 1 additional share was issued for every 100 shares held. There were 10 000 000 ordinary shares in issue at 1 January 2021.
\n\u2022 A new issue of ordinary shares occurred in October 2021. The share issue costs associated with this issue amounted to R30 000 and were paid in the same month
\nb) The following relates to transactions relating to PPE.
\n\u2022 Land was purchased for the first time during the year and it was decided to report it using the rAssessment model. At 31 December 2021, the fair value of the land was higher than its cost.
\n\u2022 Other PPE consists of Furniture and Vehicles, both of which are measure and reported using the cost model.
\n\u2022 Furniture with a carrying value of R220 000 was completely destroyed when a fire broke out at one of Arabian Nights Ltd\u2019s restaurants. Proceeds received from the insurance company relating to this amounted to R250 000 and was credited to the Gain on disposal of furniture account.
\nNo other disposals of furniture took place during the year.
\n\u2022 A vehicle with a carrying value of R380 000 was disposed of for R360 000 cash. This was the only disposal of vehicles during the year.
\n\u2022 Total depreciation for vehicles and furniture amounted to R1 275 000 for the year. Land is not depreciated.
\nc) Dividends received from the investments amounted to 35 000.
\nd) No dividends were declared during the year.
\nREQUIRED:
\nPrepare the statement of cash flows for Arabian Nights Ltd for the financial year ended 31 December 2021, using the indirect method.
\n(48 marks)
\nAligns to SAICA competencies:
\nD1.1 Financial reporting: in accordance with International Financial Reporting
\nStandards (IFRS)
\na) Prepare, analyse and evaluate general purpose financial statements in accordance with IFRS for an entity, which could be a for-profit entity, an SME, a public sector entity or a not-for-profit entity<\/p>\n","protected":false},"excerpt":{"rendered":"
HIGHER EDUCATION PROGRAMMES Academic Year 2022: January – June Formative Assessment 2: Principles of Management Accounting (HMAC230-1) NQF Level, Credits: 6, 12 Weighting: 15% Assessment\u2026<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7316,7318,7317,7315,7319,7321],"tags":[642,618,8825,576,116,631,19,643,473,633,630,628,450,597,594,626,635,574,622,624,620,621,619,623,617,625,627,634,629,632,644,645,42,66],"class_list":["post-113055","post","type-post","status-publish","format-standard","hentry","category-best-dissertation-writers-uk","category-british-dissertation-writers","category-dissertation-help-online","category-dissertation-writing-services-uk","category-help-with-dissertation-writing","category-uk-dissertation-help","tag-apps-that-write-essays-for-you-free","tag-assignment-writing-services-in-usa","tag-bes","tag-best-dissertation-writing-services","tag-best-essay-writing-service","tag-best-paper-writing-services","tag-best-research-paper-writing-services-in-usa","tag-best-website-to-write-my-essay","tag-cheap-essay-writing-service","tag-cheap-research-paper-writing-service","tag-college-paper-writing-service","tag-dissertation-help-online","tag-dissertation-writing-services","tag-dissertation-writing-services-illegal","tag-dissertation-writing-services-near-me","tag-dissertation-writing-services-usa","tag-essay-writing-service","tag-free-dissertation-writing-services","tag-homework-essay-writer","tag-homework-essay-writer-free","tag-homework-help-global","tag-homework-help-services","tag-homework-help-usa","tag-homework-writing-help","tag-homework-writing-service","tag-legit-research-paper-writing-services","tag-legitimate-dissertation-writing-services","tag-research-paper-writer-online-free","tag-research-paper-writing-services-online","tag-research-paper-writing-websites","tag-write-my-essay-for-me-cheap","tag-write-my-essay-for-me-tik-tok","tag-write-my-essay-free","tag-write-my-paper"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/113055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=113055"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/113055\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=113055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=113055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=113055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}