fundamental accounting, accounting homework help

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Unit: ACC102 – Fundamentals of Accounting II Submission Date: 2-June-2017 before 5.00 pm Weighting: The assignment is worth 40% of the total unit weight. Instructions: 1. 2. 3. 4. 5. 6. Students are required to cover all stated requirements. Your answer must be uploaded to Moodle in word file with your full name and student ID number. You need to support your answers with appropriate Harvard style references where necessary. Only include information in your appendixes that has been directly referred to in the body of your document. Include a title/cover page containing the subject title and code and the name, student id number and name. Please save the document as ACC102_B2T22016_first name_Surename_Student Number Eg:ACC102_B1T22016_John_Smith_NA20160000 1 Question 1: Perpetual Inventor Y System with Returns During the year ended 30 June 2014, TooBakko Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST. 2013 July 1 Inventory on hand 200 units@ $5.00 each 30 Sales 120 units Aug. 25 Purchases 300 @ $5.25 30 Sales 250 units Sept. 3 Purchases 450 units @ $5.30 10 Purchases returns 50 damaged units from 3 September purchase 30 Sales 300 units Oct. 5 Purchases 300 units @ $5.40 Dec. 8 Purchases 250 units at $5.45 11 Sales 500 units 2014 Feb. 21 Purchases 150 units @ $5.50 Marc 18 Purchases 100 units at $5.60 April 30 Sales 300 units May 2 Sales returns 30unitsfrom 30April sales,goods returned to inventory 4 Purchases 250 units @ $5.70 June 6 Purchases 300 units @ $5.85 30 Sales 460 units TooBakko Ltd uses a perpetual inventory system. Required A. Using dollars and cents in appropriate inventory records, determine the cost of the inventory at 30 June 2014 under the following inventory cost flow assumptions: • FIFO • Moving average (round to the nearest cent). B. Assuming that a physical count at 30 June 2014 determined that only 300 units remained in inventory, prepare the journal entry to record the fact that some units had gone missing. C. Using the moving average method, prepare the Inventory Control, Cost of Sales and Sales accounts CT-account format), assuming that these accounts are balanced yearly on 30 June. Assume as well that the physical count of inventory was as mentioned in requirement B above. Question 2: Depreciation of Machinery In early July 2013 Admirable Ltd is considering the acquisition of some machinery for $1200 000 plus GST to be used in the manufacture of a new product. The machinery has a useful life of 10 years, during which management plans to produce 500 000 units of the new product. The residual value of the machinery is $100 000. The following projections were made in order to select a depreciation method to be used for the machinery: Year ended 30 June 2014 2015 2016 2017 2018 Unitsofoutput 50 000 45000 55000 58000 60 000 Repairs and maintenance Profit before depreciation $ 70000 60000 90000 95000 100000 $350000 340000 355000 360000 380000 In calculating the profit before depreciation, all expenses have been deducted, including the repairs and maintenance expense. Required A. As the accountant for Admirable Ltd, prepare separate depreciation schedules for the machinery for the 5-year period, using the following depreciation methods: (a) straight-line, (b) diminishing• balance, (c) sum-of-years-digits, and (d) units-of-production. Use the following headings for each schedule: 'Year ending 30 June', 'Annual 2 depreciation expense', 'Accumulated depreci• ation', 'Carrying amount at end of year'. B. Prepare a report for management, stating the advantages and disadvantages of each depreciation method. Include in the report your recommendations on the choice of method consistent with the requirements of IAS 16/AASB 116. Support your recommendations with schedules show• ing the total annual cost of operating the machinery, and the profit after depreciation. Question 3: Disposal and Revaluation Increases and Decreases On 1 January 2011, Punchbowl Ltd bought a machine for $33 000 cash; its useful life was 12 years and its residual value was $3000. It was decided to depreciate the machine by the straight-line method. On 30 September 2013, the machine was traded in to Leichhardt Ltd for a new model, the total cost being $25 000. Leichhardt Ltd allowed $17 000 for the old machine. It was decided to depreciate the new machine at the rate of 45% p.a. by the diminishing-balance method. Residual value of the new machine was $7000. On 1 July 2014, Punchbowl Ltd decided to adopt the revaluation model and revalue its machine upwards to reflect fair values. This represented a 15% increase in the carrying amount of the machine. The diminishing-balance method of depreciation was continued at the same rate. The accounting period ended on 30 June each year. At 30 June 2015, the carrying amount of the machine was approximately equal tofair value. Required A. Prepare relevant ledger accounts to record the above transactions up to 30 June 2015. Ignore GST. B. Show how the asset would appear in the financial statements of Punchbowl Ltd as at 30 June 2012, 30 June 2014 and 30 June 2015. C. Show the Machinery account and Accumulated Depreciation -Machinery account if the revalu• ation on 1July 2014 had been downwards instead of upwards. 3 ...
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Tutor Answer

Robyn1994
School: Cornell University

Attached.

FIRST IN FIRST OUT
Purchases
Date

units

Balance

unit cost

total cost

units

unit cost

total cost

units

July
1

200

5

Aug

1,000.00

7/30/2013

120

9

1,080.00

25

300

5.25

1,575.00

80
8/30/2013

3-Sep

450

5.3

(50.00)

5.30

400

5.30

80

9.00

720.00

80

170

9.00

1,530.00

130

2,385.00
(265.00)
2,120.00 30/9/2013
-

5-Oct

300

5.4

1,620.00

7-Dec

250

5.45

1,362.50

-

400

-

530

130

9

1,170.00

230

170

9

1,530.00

300

230

9

2,070.00

70

9

630.00

100

9

900.00

530

150
1-Jan

150

5.45

817.50

21-Feb

150

5.5

825.00

30-Apr

150

5.45

817.50

18-Mar

100

5.6

560.00

30-Apr

150

5.5

825.00

-30

5.6

(168.00)

100

657.00
4-May

250

5.7

1,425.00

100

5.6

560.00

6-Jun

300

5.85

1,755.00

250

5.7

1,425.00

110

5.85

643.50
190

Balance
unit cost

-

total cost

-

5.00

400.00

5.00

400.00

5.25

682.50

5.30

2,120.00

5.25

2,782.50

5.25

1,207.50

5.4

1,620.00
2,827.50

5.45

817.50

5.6

560.00

5.85

1,111.50

Fortune Stores
Weighted Average Method (WAM)
Purchases
Date

units

unit cost

total cost

units

unit cost

total cost

July
1

200

5.00

9

1,000.00
-

Aug
25

300

5.25

1,575.00

3-Sep

450

5.3

2,385.00

-50

5.3

400

(265.00)

30-Jul

120

5

600.00

30-Aug

180

5.25

945.00

30-Sep

300

5.3

1,590.00

2,120.00

5-Oct

300

5.4

1,620.00

300

5.4

1,620.00

8-Dec

250

5.45

1,362.50

200

5.45

1,090.00

2,982.50

...

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