( show the formula in every step and from were the number come from)

standard Costing & Variance Analysis

Delic plc. is a manufacturer of cakes that makes a wide range of cakes. It operates a standard marginal cost accounting system. Given below, is information relating to one of its products, i.e. birthday cakes, which are made in one of the company departments:

                                                                                                          $

Direct materials purchased and used, 113,500kg                       442,650

        Direct labour, 17,800 hours                                                   129,940

        Variable production overhead incurred                                    58,800

        Fixed production overhead incurred                                     104,000

                         total                                                                               735,390

Required:

1. Prepare a statement showing, by cost elements (i.e. direct materials; direct labour; variable overhead; and fixed overhead), the:
   1. original budget                                                                                                
   2. flexed budget                                                                                                  
   3. actual cost                                                                                                       
   4. total variances                                                                                             
2. To be more informative for managerial purposes, prepare the following variances:
   1. Material price variance                                                                                   
   2. Material usage variance                                                                                 

                (iii) Wage rate variance                                                                                        

1. Labour efficiency variance                                                                            
2. Variable overhead expenditure variance                                                        

                   vi) Variable overhead efficiency variance    

Part A   

Gedolf Ltd and Spike Ltd each hold 50% of the shares in Butch Ltd. All companies are involved in the artificial intelligence industry. Gedolf Ltd agrees that Spike Ltd should provide the management of Butch Ltd because of the expertise provided by its managing director, Rob Gedolf. Spike Ltd receives a management fee for providing its expertise.

Required:                                                                                                                  

Determine whether a parent–subsidiary relationship exists and which entity, if any, is a parent required to prepare consolidated financial statements under AASB 10.

Coca-Cola Amatil (CCA) is one of the largest manufacturers of soft drinks in the Asia-Pacific
region and operates in six countries – Australia, New Zealand, Indonesia, Papua New Guinea,
Fiji and Samoa. CCA is also listed on the Australian Stock Exchange since 1970. Your task is
to download CCA’s 2017 Annual Report and answer the following questions.
1. What is the average annual dividend growth rate for CCA between 2013 and 2017?
Hint-use information provided on page 135.
2. Do you think CCA will maintain this recent growth rate forever? Justify your answer
and if you disagree then also suggest a new dividend growth rate range. Hint-start by
reading pages 8-9.
3. Suppose the annual dividend growth rate is 5 percent, which will continue into the
foreseeable future. What is the intrinsic value of CCA’s share at 31st December 2018,
if you require an annual return of 10 percent?
4. What was CCA’s share price on 31st December 2018?
5. Should you invest in CCA’s shares based on 3 and 4 above? Why or why not?

how do state estate tax payments or state death tax payments affect the estate tax return

On November 1, 2017, Sandhill Company adopted a stock-option plan that granted options to key executives to purchase 28,500 shares of the company’s $10 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $427,500.

All of the options were exercised during the year 2020: 19,000 on January 3 when the market price was $67, and 9,500 on May 1 when the market price was $77 a share.

Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019.

At the end of last month, Ajax Inc. had the following balances in its accounts: Cash $ 5,000 Inventory $10,000 Equipment $ 3,000 Land $10,000 Owe Jones $10,000 Common Stock $10,000 Retained Earnings $ 8,000 Set up the initial Balance Sheet for this month, make the appropriate entries for this month using the Accounting Equation, and show the ending Balance Sheet for this month. The following should be included for this month: a. Buy inventory from Jones on credit for $10,000 b. Sell goods for $4,000 c. Sell common stock for $1,000 d. Pay wages of $2,000 e. Pay tax of $1,000 f. Sell goods to Smith on credit for $15,000 g. Pay rent of $100 h. Pay Jones $2,000 i. Depreciate equipment $200 j. Inventory at the end of the month is worth $7,000

Case: Monica’s Designer Handbags: Creative Marketing Decision-Making

QUESTIONS FOR STUDENTS TO ANSWER

1. What is Monica’s unit contribution margin (in dollars per handbag) on the Grand*Mart initial deal, using their suggested wholesale price of $20, after incremental direct expenses? (Diagram as Exhibit 2 - Grand*Mart Discount Channel.)
2. What is the incremental profit impact (in dollars per month) of the suggested initial Grand*Mart 2,000 bag deal to Monica, after the increased overhead expense of $25,000? What is the incremental profit impact of the prospective 10,000 bag order, after increased overhead expense of $75,000?
3. What are Monica’s other key financial and non-financial considerations (such as, cannibalization of the independent retailer channel) for the suggested Grand*Mart deal?
4. Should Monica propose the Grand*Mart deal as suggested? Or should she take a pass and stay exclusively with the independent retailer channel? Or should she renegotiate the initial 2,000 bag deal for the first quarter? Should she offer Grand*Mart an exclusive 10,000 deal for the second quarter?
5. What is the maximum wholesale price that Grand*Mart could be willing to pay Monica, given their probable retail price and typical margin requirements? If Monica decides to renegotiate the initial Grand*Mart deal as of the first quarter with volumes of 2,000 bags per month and incremental overhead of $25,000 per month, what “best and final” price should she propose that would be acceptable to both parties? What is the revised incremental profit impact?
6. If Monica decides to offer Grand*Mart an exclusive deal as of the second quarter at minimum volumes of 10,000 bags per month with overhead expenses of $75,000 per month, what “best and final” price should she propose that would be acceptable to both parties? What is the profit impact of this exclusive deal?

What kind of international pricing strategy would be used for CVS Health when it enters Turkey? Why?

"The Cost of Complexity"

• Use the Internet and/or Strayer Library to research financial statements of a manufacturing company. Analyze the cost components of the primary manufacturing process and examine the significance of cost behavior analysis to the company. Evaluate the value of using cost behavior analysis to management.
• Examine the elements of the cost-volume-profit (CVP) income statement and provide your opinion on the benefits of its use for decision making by the management of the company researched over traditional income statements under generally accepted accounting principles (GAAP).

Briefly describe (not just list) two filings that a public company is required to file with the SEC.

Assume that the audit for National Australia Bank Limited (NAB), a financial institution, will be coming up for tender. You and your colleagues are required to prepare a client evaluation report based on your research for the senior members of your auditing firm. Your report should provide preliminary information as to whether the auditing firm should consider tendering for the audit of NAB. You should conduct extensive research and perform an analysis of the annual report of National Australia Bank Limited together with its controlled entities for the year ended 30 June 2018 and any other relevant information (Hint: Company’s website and Business news) that you have obtained.

1.. Identify and explain THREE business risks that could have an impact on the audit of NAB.

2.The recent Royal Commission highlighted a number of internal control deficiencies and fraud perpetuated on NAB clients for an extended period of time. These findings have serious ramifications for NAB. How will these findings affect your tendering decision?

July 1              The company decided that 1,500,000 ordinary shares were to be offered to the public at an issue price of $3, payable as follows:

$1.50 on application (due 1 August)

$0.50 on allotment (due 30 August)

$1 on future calls

August 1        Applications had been received for 1,750,000 shares of which applicants for 300,000 shares forwarded the full $3 per share, the remainder paying only the application money.

August 5        At the directors’ meeting it was decided to allot ordinary shares in full to the applicants who paid the full amount and proportionally to all remaining applicants. According to the company’s constitution, all surplus money from application can be transferred to Allotment and Call accounts.

August 30      All outstanding allotment money was received.

November 1   The final call on was made, with payment due by 28 November.

November 28 All money was received on the due date except for the holders of 60,000 shares who failed to meet the call.

Required: Prepare General Journal Entries with narrations and full working out

January 8 A prospectus was issued, inviting applications for 200,000 “B” ordinary shares at an issue price of $2, payable full on application. The purpose of the issue was to fund the redemption of the preference shares.

February 8     The issue closed fully subscribed, with all money due having been received. The 200,000 “B” ordinary shares were allotted on the same day. As previously indicated, the directors resolved to redeem the preference shares (equity) out of the proceeds of the “B” ordinary shares. Cheques were issued to the preference shareholders.

Required:

General journal entries with narrations and working out

HARDA Fashion sells ready-to-wear fashion clothes to teenagers. The company has a 20-store chain concentrated in the north-eastern part of the United States of America. Each store has the experienced full-time staff consist of a manager and an assistant manager. The full-time
staff is paid a fixed salary. The full-time staff is assisted with a cashier and a sales assistant who have comparatively less experience. The cashier and sales assistant are paid hourly wages plus the commission based on the volume of sales. HARDA Fashion uses unsophisticated cash registered with four-parts sales invoice to record each financial transaction. These sales invoices for the sales transaction irrespective of the payment type.
The record-keeping starts with the sales assistant on the sales floor. The sales assistant fills the sales invoices manually by providing the following information:
1. Records his or her employee number.
2. Enters the transaction details including clothes item number, description, quantity,
and the unit price.
3. Totals the sales invoice.
4. Calculates the discounts manually when appropriate.
5. Calculates the sales tax.
6. Finalise the sales invoice after calculating the grand total.
The sales assistant then forwards the sale invoice to the cashier and keeps one copy in the sales book. The cashier reviews this sales invoice and enters in the cash register. The cash register mechanically validates the invoice, automatically assigning a consecutive number to the transaction. The cashier is also responsible for getting credit approval on charge sales and
approving sales paid by cheque. The cashier gives

(1) one copy of the invoice to the customer,
(2) retains the second copy as a store copy, and (3) the third for a bankcard, if a deposit is needed. Returns are handled in exactly the reverse manner, with the cashier issuing a return slip.
At the end of each day, the cashier sequentially orders the sales invoices and takes cash register totals for cash, bankcard, cheque sales, and cash and credit card return. These totals are reconciled by the assistant manager to the cash register tapes, the total of the consecutively numbered sales invoices, and the return slips. The assistant manager prepares a daily
reconciliation report for the store manager’s review.
3 The manager reviews cash, cheque, and credit card sales and then prepares the daily bank deposit (credit card sales invoices are included in the deposit). The manager makes the deposit at the bank and files the validated deposit slip.
The cash register tapes, sales invoices, and return slips are forwarded daily to the central data
processing department at corporate headquarters for processing. The data processing department returns a weekly sales and commission activity report to the manager for review.
Required
Prepare a report to Chief Executive Officer of HARDA Fashion to evaluate its processes, risks, and internal controls for its revenue cycle. In your report, you need to include the following items:
1. Identify six strengths in HARDA’s system for controlling sales transactions.
2. For each strength identified, explain what problem(s) HARDA Fashion has avoided by incorporating the strengths in the system for controlling sales transactions.
3. Identify two situational pressures in a company like HARDA Fashion that would increase the likelihood of fraud.
4. Explain why some companies would choose to install a distributed computer system rather than a centralised one.