Accounting Assignment Help Australia

Question 1

Introduction: this question analysis the significance of accounting information and therefore it must be reported accurately. Also, the significance of using accounting principles is highlighted in this question.

    a.   Accounting information reported by Angela Duffy affects some of the stakeholders such as creditors & stockholders of the company. Besides, it also affects the users of the Duffy’s accounting reports which are Jana & Angela. It is reported that the users who relies on accounting reports are harmed as it provides unreliable information. Providing unreliable information about the land might mislead people.

  b.Accounting principles & standards are violated as wrong information is bring reported in the accounting reports for the purpose of increasing investments. Angela has not made an ethical decision as historic principle is violated. According to this principle, the asset must be reported at its actual cost. The cost should be faithfully represented & must be objectively verified. Thus, reporting inappropriately is not an ethical decision.

Question 2

Introduction: the questions provides information about how net change in income is calculated when selling price and other associated costs are given. Hence, the net change is calculated when 10,000 hats are taken as order.

Number of hats= 10,000

Cost per unit for the new order= $25

10,000 x 25= 250,000

10,000 x 13= 130,000

Change in net income = 250,000 – 130,000

                                        = $ 120,000

Conclusion: There is an increase in net income by $120,000 when the order of 10,000 is taken at $25/ unit.

Question 3

Introduction: The goods which were held on the consignment are deducted from the inventory which has a cost of $35,000. The goods purchased in transit of FOB shipping should be added to the inventory which costs $ 20,000. The goods sold for the cost of $18,000 held in transit must not be included in closing inventory.

Hence, the carried inventory is calculated as follows:

= $200,000 – 35,000 + 20,000

= $ 185,000

Conclusion: The inventory information provided shows that the carried amount calculated in $ 185,000.

Question 4

Introduction: this question provides an understanding of numerous concepts such as gross profit, operating profit, net profits, & how to calculate depreciation using different methods. All calculations are shown below.

     a.      Gross profit= sales revenue – cost of goods sold

                    = 85,000 – 37,000

                    = 48,000

     b.     Operating profit= Revenues – CGS – operating expenses – depreciation

                                 = 85,000 – 37,000 – 4500 – 4000 – 4250

                                  = 35,250

     c.      Net profit after tax = Operating income x (1- rate of tax)

                               = 35,250 x (1- 0.3)

                               = 35,250 x 0.7

                               = 24,675

     d.     Calculating depreciation using MACRS method:

Year	Current depreciation	Accumulated depreciation	Book value
0			85,000
1	85,000 x 0.2 = 17,000	17,000	68,000
2	85,000 x 0.32 = 27,200	44,200	40800
3	85,000 x 0.19 = 16,150	60,350	24,650
4	85,000 x 0.12 = 10,200	70,550	14,450
5	85,000 x 0.12 = 10,200	80,750	4,250
6	85,000 x 0.05 = 4,250	85,000	0

 

Calculating depreciation using straight-line method:

Depreciation = (Asset cost – scrap value)/ useful life

                     = 85,000 – 5000/ 5

                     = $16,000

Conclusion: Yes, definitely the value of depreciation differs when calculating using both methods.

Question 5

Introduction: this question is related to inventory methods that includes LIFO in which last products are sold first, FIFO in which previous inventories are sold first, & average method goods are accepted at varying price.

     1.     Calculating total cost and total units

Units available to sale = 15,500

Less ending inventory= 3500

Units sold= 12000

Average Cost Method

Average cost = 142,500/15500 = $9.19

CGS = units sold x average cost

        = 12,000 x 9.19

       = $ 110,328

Inventory = 3500 x 9.19

                 = $32,179

FIFO Method

Total cost = 142,500

Less ending inventory = 67,500

CGS = $ 75,000

LIFO Method

      Total cost = 142,500

Less ending inventory = 26,500

CGS = $ 116,000

     2.     Highest ending inventory = FIFO method

Highest CGS = LIFO method

Conclusion: Every method is unique in its characteristics but LIFO and FIFO are used extensively.

Question 6

Introduction: the question analyzes on how to determine incremental product units and how to calculates sales volume. The following parts below shows how they all are calculated.

     a.      Incremental cost/ unit = all variables costs/ units produced

                                   = (199 + 269) / 3 million

                                   = 468/ 3 million

                                    = 0.000156

Incremental units of product = 0.000156 x 20 million

                                               = 3120

     b.     Luzella can feasibly sell this quantity of units as the total cost for these units is within the amount of 20 million.

     c.      Number of units

Target Profit = (unit margin x quantity) – Fixed expenses

4,000,000 = 99Q – (3 million x 199)

4,000,000 = 99Q – (597,000,000)

Q= 6,070,707.07

     d.     Part (a)

Sales volume = (change in price) x units sold

                     = (249 199) x 3,000,000

                     = 150,000,000 

Part (b)

Current profit = (199-125) x S– 592,000,000

150,000,000 = 74 S – 592,000,000

S = 742,000,000/74

Sales = 10,027,027.03

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