4.   The firm planned to sell 40,000 units at a price of 14 TL per unit in the master budget. The firm actually sold 38,000 units. The firm planned to produce 42,000 units in the master budget but the firm actually produced 40,000 units. In master budget, each unit requires 0.6 direct labor hours and direct labor cost per hour is 7 TL. (14 Points)

a.   Calculate sales revenue, direct materials, direct labor, and variable manufacturing overhead activity variances and indicate whether the variances are favorable (F) or unfavorable (U). (First you have to complete missing values in the table)

b.   Calculate revenue variance. Indicate whether the variance is favorable (F) or unfavorable (U).

c.   Calculate direct materials, direct labor, and variable manufacturing overhead spending variances and indicate whether the variances are favorable (F) or unfavorable (U).

Presented below are selected ledger accounts of Woods Corporation at December 31, 2015.

Woods's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.

Requirement:

Prepare a 2015 income statement for Woods Corporation

4.  Create a C/R/Psystem chart for your product line. First, complete the data matrix        

     shown below with appropriate “R” and “P” values that would be associated with each

     given value of “x”.  Second, use the “x”, “C”, “R”, “P” information as the basis for  

    your Excel Chart.  

      a.  To identify Revenue “R” values, use the equation you previously created in  

           Section B, item “B.3”, to perform calculations at each “x” value.

Revenue.  R= [(p)][(x)] = [–0.4375(x) + 937.5][(x)] = –0.4375(x)²+ 937.5(x).

      b.  To identify Profit “P” values, perform (R) – (C) calculations at each “x” value.  

      c.  Use Excel’s Chart feature to plot the product’s “C”, “R” and “P” values from  

           your completed data matrix on one set of axes. Include “trend lines”, “trend line”

           equations and appropriate “[(R²)]” or “[(R²)_adj]” values.  

Beatriz enjoys writing and uses a large amount of paper. Currently, paper costs $2.00 for 100 sheets. The formula for her demand curve is S=525−50PS, where PS is the price of 100 sheets and S is the number of packages of 100 sheets. The governor of her state has proposed taxing paper at the rate of $1.50 for each 100 sheets. Assume this policy would increase the price of paper to $3.50 (including tax). Draw Beatriz's demand curve. Instructions: Use the tool provided "Demand" to plot Beatriz's demand curve. The x-axis represents S, and the y-axis represents PS. a. Compute the change in her consumer surplus for the proposed tax increase. Instructions: Round your answer to 2 decimal places. Include a negative sign if necessary. $ b. How much revenue will the government raise by taxing Beatriz? Instructions: Enter your answer as a whole number. $ What is the combined change in government revenue and consumer surplus? Instructions: Enter your answer as a whole number. Include a negative sign if necessary. $ Does the new tax raise enough revenue for the government to compensate Beatriz for her loss? Yes No

Presented below are selected ledger accounts of Woods Corporation at December 31, 2015.

Woods's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.

Requirement:

Prepare a 2015 income statement for Woods Corporation

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,400 Revenue ($4.15q) $ 30,710 Expenses: Packing supplies ($0.30q) 2,220 Oyster bed maintenance ($3,600) 3,600 Wages and salaries ($2,200 + $0.30q) 4,420 Shipping ($0.55q) 4,070 Utilities ($1,200) 1,200 Other ($410 + $0.01q) 484 Total expense 15,994 Net operating income $ 14,716 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,400 Revenue $ 27,100 Expenses: Packing supplies 2,390 Oyster bed maintenance 3,460 Wages and salaries 4,830 Shipping 3,800 Utilities 1,010 Other 1,104 Total expense 16,594 Net operating income $ 10,506 Required: Compute the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 8,000 Revenue ($4.15q) $ 33,200 Expenses: Packing supplies ($0.35q) 2,800 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,200 + $0.30q) 4,600 Shipping ($0.80q) 6,400 Utilities ($1,290) 1,290 Other ($500 + $0.01q) 580 Total expense 18,970 Net operating income $ 14,230 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 26,700 Expenses: Packing supplies 2,970 Oyster bed maintenance 3,160 Wages and salaries 5,010 Shipping 6,130 Utilities 1,100 Other 1,200 Total expense 19,570 Net operating income $ 7,130

Required: Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below:

The actual results for August were as follows:

Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Question 5 During the year ending 30th April 2020, Borg plc entered into a contract to build a factory for a price of £1,000,000, plus a performance bonus of £100,000 if the factory was complete by 31st March 2021. The contract met the criteria for revenue to be recognised over time. Due to delays caused by poor weather the directors of Borg did not expect to complete the factory by 31st March 2021. Where relevant, Borg plc measures completion based on an independent valuer. The following information relates to the contract as at 30th April 2020: £ Costs incurred to date 600,000 Estimate of the costs to complete the contract 200,000 Value of work certified by independent expert 750,000 Amounts invoiced to date 665,000 Requirements IFRS 15 contains three criteria regarding when revenue should be recognised over time as opposed to at a point in time.

State any TWO of the three criteria.

Explain how the directors should treat the performance bonus with respect to revenue recognition.

Prepare the relevant Statement of profit or loss and Statement of financial position extracts in respect of the above contract for the year ended 30th April 2020.