Assignment 1 for ACC 320
Answer these question in less then 3-4 lines except question 1 [a little longer]
- Example of assignment with answer
The following information pertains to the York Company for the year ending December 31, 2020
- Prepare a COGM statement
- Prepare an income statement [ assume interest expense to be $13000 and tax rate to be 25%]
Name of company : York Company
Statement of COGM
Date : Dec 31, 2020
Direct Materials $ $ Beginning Inventory of RM 33000 Add Purchases of RM 220,000 Cost of RM available for sale 253,000 Less: Ending Inventory for RM (22,000) Direct materials used 231,000 Direct Labour 110,000 Manufacturing Overhead Indirect Materials 9,000 Indirect Labour 14,000 Depreciation of factory equipment 50,000 Depreciation of factory buildings 29000 Manufacturing overhead 102,000 Manufacturing cost 443,000+ ADD : Beginning work in Process [WIP] 54,000 Total Manufacturing costs 497,000 LESS : Ending WIP (45000) COGM 452,000
Explanation of Abbreviations
RM = Raw Material
( ) = –
Name of company: York Company
Statement of income Statement
Date : Dec 31,2020
$ $ Total Sales Or Revenue 840,000 LESS: sales return and allowances (17,000) Sales Discount (12000) Net Sales 811,000 Cost Of Goods Sold [COGS] Beginning finished goods 124,000 ADD : COGM 452,000 Goods available for sale 576,000 Less: Ending Finished Goods (115,000) COGS (461,000) Gross Profit 350,000 Less: Operating Expenses Selling Expenses 130,000 General & Administration cost 15000 Total operating expenses (145,000) Operating Income [EBIT] 205,000 Interest Expense (13,000) Profit before tax [EBT] 192,000 Tax (48000)* Net Income 144,000
Tax* = EBT x Tax rate = 192000 x 0.25 = 48,000
- What are the three management functions that management accounting information can be used to make them become more effective? Explain each very briefly.
- Explain what is the process of control?
- Why is feedback necessary in management process?
- What does Total Quality management emphasize [or put stress on]?
- What are the two factors that can prevent a manager to maximize profit ?
- Give an example of (a) planning (b) decision making
- What is employee empowerment ?
- How can ethical conduct improve profitability of a company
The following information pertains to the York Company for the year ending December 31, 2019.
|Purchases of raw materials||40,000|
|Depreciation of factory equipment||10,000|
|Depreciation of factory buildings||19,000|
|Depreciation of admin buildings||5,000|
|Direct Labour Hours||2000|
|Hourly Rate for direct labour||10|
|Raw materials inventory Dec 31 2019||9,000|
|WIP Jan 1 2019||4,000|
|Sales Return/ allowances||10,000|
|Raw Materials Jan 1 2019||3,000|
|WIP Dec 31 2019||15,000|
|Finished Goods Inventory Jan 1 2019||7,000|
|Finished Goods Inventory Dec 31 2019||15,000|
- Prepare a COGM statement
- Prepare an income statement [ assume interest expense to be $10000 and tax rate to be 15%]
EXAMPLE CARRIED OUT