25UMI BOLLIES Financial year 2021 1 200 Financial year 2022 900 Wicketer Machine WTS has elected to diversify its operations by producing sustainable plastic bags. On 1 April 2020, a wicketer machine was purchased to create these plastic bags and was immediately brought into use. The cost of the wicketer machine is as follows: Purchase Price R70 000 R15 000 Installation Staff Training R6 500 The machine has a useful life of 10 years and management's policy is to revalue the machine every two years from the date of purchase. The entity adopts the elimination method for revaluations. The machine is depreciated on a straight-line basis. An independent valuator who is a competent industry expert has determined the fair value of the machine to be R90 000 on the 2nd anniversary of the purchase of the machine. The Financial Director has also approved a policy that the revaluation surplus may be transferred to retained earnings as the asset is used. Required: Q.1.1 Calculate the carrying value of the Fruit Filtration Machine at 30 June 2022.
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- GREEN PRODUCTS GARDENSUPPLY (STAND-ALONE PC-BASEDACCOUNTING SYSTEM)Green Products Garden (GPG) Supply sells and distributesa wide range of garden products and equipmentincluding organic fertilizers, premium flowerand grass seeds, organic pesticides, and gardenspreaders. GPG’s headquarters and warehouse islocated in Hopewell, Virginia. Their customers areprimarily small garden centers and landscape companiesin the Mid-Atlantic States. Sales are oncredit.GPG’s current information system includes manualprocedures supported by independent (nonnetworked)PCs in each department. Communicationsbetween departments is entirely through hardcopydocuments. Recently, GPG has been receivingcomplaints from customers and suppliers about billing,shipping, and payment errors. Managementbelieves that these complaints stem, in part, fromtheir antiquated computer system. You have beenhired to assess GPG’s procedures and internal controls.The following is a description of GPG’s revenue cycle. Sales…QUESTION North Ltd produces a single product and owns boiler plants A, B and C. Each boiler plant is located on a different continent. A produces a component that is assembled in either B or C. The combined capacity of B and C is not fully utilized. North’s products are sold worldwide from either B or C. For example B ‘s production can be on C’s continent if the products can be delivered faster from B than from C. Utilisation levels of B and C depend on allocation of sales between the two sites. Case 1 There is an active market for A’s products Case 2 There is no active market for A’s products REQUIRED TO; 1. For each case identify Cash generating units for A,B and C. 2. List the indicators considered in assessing whether assets are likely to be impaired.Spiedino Company sells its products to both residential and commercial customers in eight sales territories. In which of the following ways could Spiedino be segmented? by product and then further segmented by type of customer. by type of customer and then further segmented by sales territory. by sales territory and then further segmented by product line. all of the above.
- Before you begin this assignment review the Tying It All Together feature in the chapter Starbucks Corporation is the premier roaster, marketer, and retailer of specialty coffee in the world, operating in 68 countries. Starbucks generates revenues through company-operated stores, licensed stores, and consumer packaged goods. In 20 5, revenues from company-operated stores accounted for 79% of total revenues. Starbucks states that its retail objective is to be the leading retailer and brand of coffee and tea by selling the finest quality coffee, tea, and related products In addition, the company strives to provide the Starbucks Experience by exemplifying superior customer service and providing clean and well maintained stores. Part of this experience involves providing free internet service to customers while they are enjoying their food and beverages. Requirements How would the cost of internet service be reported by Starbucks and on which financial statement? Suppose Starbucks…Problem 15-40 (Algo) Evaluate Profit Impact of Alternative Transfer Decisions (LO 15-2, 3) Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each. Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company’s container plant, which is a part of Container Division. Mixing Division uses all of the container plant’s production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division. At your request, Container Division’s…“The additional cost required to establish separate departments for warehousing,shipping and inventory control is considered a necessary cost for the added benefit ofcontrol over inventory.” case study The Revenue Cycle of RCE Limited.RCE Limited is a Queensland based wholeseller that deals in the rafting and campingequipment. In particular, RCE Limited serves outdoor sports camping retailers throughoutthe Queensland. Mr. Chris Doubler has recently joined the accounting department of RCELimited as a head of the department. Mr. Doubler gathered a wide range of data from hisdeparment using different sources to improve the operations of his departmetn. Afteranalysing this data, Mr. Doubler is concerned about the revenue cycle of RCE Limited.You are running an accounting consultancy and considered as the best consultant on theaccounting information system. Therefore, Mr. Doubler approached you to evaluate theirrevenue cycle. During the initial meeting, you suspect that the business…
- Bollozos Afterlife Corporation's Division A manufactures and sells product Brand X, which is used in refrigeration systems. Per-unit variable manufacturing and selling costs amount to P20 and P5, respectively The Division can sell this item to external domestic customers for P36 or, alternatively, transfer the product to the company's Division B. Division B is currently purchasing a similar unit from Taiwan for P33. Assume use of the general transfer-pricing rule. •What is the most that the Division B would be willing to pay the Division A for one unit? • If Division A had excess capacity, what transfer price would the Division's management set? · If Division A had no excess capacity, what transfer price would the Divisions management set? If Division A had no excess capacity, what transfer price would the Divisions management set assuming that Division A was able to reduce the variable cost of internal transfers by P4 per unitQuestion The Mandalorian Company has two divisions, Production and Marketing. Production manufactures Beskar Head Armour for Knights of the Old Republic, which it sells to both the Marketing Division and to other retailers (the latter under a different brand name). Marketing operates several small armour stores in shopping centers throughout Corruscant. Marketing sells both Beskar Head Armour and other brands. Relevant facts for Production are as follows: Sales Price to Outsiders.............................................................$28.50 per Pcs Variable Cost to Produce...........................................................$18.00 per Pcs Fixed Costs ................................................................................$100,000 per Month The following data pertain to the sale of Mandalorian Company Beskar Head Armour by Marketing: Marketing is operating far below its capacity. Sales…Suppose Coca-Cola and Pepsi Companies have each one affiliate in Sultanate of Oman. But Coca-Cola affiliate was able to reduce the cost of its raw materials more than Pepsi affiliate which leads to the increase of its market share in the Sultanate of Oman. Which of the following exposures do 14 you think is the Omani affiliate of Pepsi Company facing? O a. Translation exposure O b. Economic exposure O C. Accounting exposure O d. Transaction exposure
- Problem 2. Lucky Company produces two rice-based instant noodles-Lucky Him (tiny noodles) and Lucky Her (large noodles) from common inputs, flour and spices. A waste product results from the joint process which is sold to cattle ranchers at P10 per ton. The revenue from the sale of by-product is treated as other sales revenue. At split off point, the main products can be sold to companies who package and sell them under their own branch names. With the rising popularity of noodles as a meal, Lucky Company add bits of preprocessed vegetables to Lucky Him and Lucky Her, package them, and sell them under the brand names Nissins and Ramens. Joint Costs Lucky Him Lucky Her Costs of flour and spices Production in tons Sales in tons P1,200,000 5,000 tons of BP 50,000 50,000 P20 P240,000 100,000 100,000 P30 Selling price per ton Separable costs of processing 50,000 tons of Lucky Him into 60,000 tons of Nissins Separable costs of processing 100,000 tons of Lucky Her into 120,000 tons of Ramens…GREEN POND NURSERY (STANDALONE PC-BASED ACCOUNTING SYSTEM) Green Pond Nursery Supply (GPNS) is a garden center wholesaler in eastern Pennsylvania that sells and distributes a wide range of garden products and equipment including organic fertilizers, premium flower and grass seeds, organic pesticides, and garden spreaders. GPNSs customers are primarily small garden centers and landscape companies in the Mid-Atlantic States. Sales are on credit. GPNSs current information system includes manual procedures supported by independent (non-networked) PCs in each department Communications between departments are entirely through hard-copy documents. Recently, GPNS has been receiving complaints from suppliers regarding payment errors. Management believes that these complaints stem, in part, from their antiquated computer system. You have been hired to assess GPNSs procedures and internal controls. The following is a description of GPNSs expenditure cycle. Purchasing Process The purchasing agent receives an inventory status report from the inventory control department, which identifies the items that need to be reordered. The agent selects the suppliers, enters this information into the computer terminal to create a digital purchase order, and then prints three hard copies of the purchase order. He sends one copy to the supplier; one copy to the AP department, where it is filed temporarily, and files the third copy in the purchasing department. When the goods are received, the receiving department inspects and verifies them using the packing slip, which is attached to the goods. The receiving clerk manually prepares two hard copies of a receiving report. One copy accompanies the goods to the warehouse for storage. The receiving clerk sends the second copy to the purchasing agent who closes the open purchase order. The purchase agent then forwards the receiving report to the inventory control clerk. The inventory control clerk receives the receiving report and updates the inventory subsidiary. At the close of business, the clerk prepares an inventory summary, which he sends to the general ledger clerk. Accounts Payable and Cash Disbursements Procedures The AP clerk receives the suppliers invoice and reconciles it with the purchase order in the temporary file. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP subsidiary ledger. The purchases order and invoice are then filed in the department. Each day, the AP clerk visually searches the AP subsidiary ledger from her terminal for invoices that are due to be paid. The clerk prepares the check and records it in the digital check register. The negotiable portion of the check is mailed to the vendor, and a check copy is filed. The clerk then closes the liability in the AP subsidiary ledger and prepares a journal voucher, which she sends to the general ledger clerk. Upon receipt of the inventory summary and journal voucher, the general ledger clerk updates the inventory control, AP control, and cash accounts. Required a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the physical internal control weaknesses in the system. d. (Optional) Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses that you identified. Explain your solution.Question 3 (11 marks) Edex limited is a renowned agricultural chemical manufacturer in Australia. They conduct many research and development in the field of Agri and Horticulture. Company wanted to examine the effect of temperature on farming of their selected range of products. Company has produced following results based on their data gathering. 15° C 35 24 36 39 32 25° C 30 31 34 23 27 35° C 23 28 28 30 31 You are required to answer following questions; State the null and alternative hypothesis for single factor ANOVA to test for any significant difference in the perception among three groups. (1 marks) ANSWER: State the decision rule at 5% significance level. (2 marks) ANSWER: Calculate the test statistic. (6 marks) ANSWER: Based on the calculated test statistics, decide whether there are any significant differences between the…