Can you please work as fast as possible? I will fail this course if I don't submit on time
UNIVERSITY OF THE SOUTHERN CARIBBEAN SCHOOL OF BUSINESS ACCT122 – FUNDAMENTALS OF ACCOUNTING 2 FINAL ASSESSMENT BY ESTHER CEDENO, MBA INSTRUCTION: Answer ANY four (4) questions. 1. Sandy Ltd. had incurred $111,000 of direct labor costs during 2015. There were no beginning material but $78,000 was purchased and $3,000 remained at the end of the period. Indirect labor amounted to $5,100 while other operating costs pertaining to the factory included utilities of $10,100; maintenance of $12,500; repairs of $5,300; depreciation of $27,300. The sales salary was $60,000 and the CEO salary was $120,000. There $1,500 beginning and no ending finished goods. The Work-in-Process account reflected a balance of $22,500 at the beginning of the period and $16,500 at the end of the period. Requirement: a) Identify the inventory(ies) that Sandy Ltd. has. (3 points) b) Prepare a Schedule of Cost of Goods Manufactured for Sandy Ltd for the period Dec. 31st 2015. (10 points) c) Identify the period costs. (2 points) d) Explain 5 differences between managerial and financial accounting. (5 points) 2. Oral is a joiner that specialises is making custom furniture for his clients. He allocates manufacturing overhead based 90% of direct labour costs. During January 2015 Oral recorded the following transactions: 1. Purchased materials on account, $40,000 1. Paid advertising expense, 20,000 1. The production department requisitioned $43,000 worth of direct materials and $15,000 worth of indirect materials 1. Incurred $50,000 of manufacturing wages, 75% of which was direct labour with the remainder considered wages for indirect labour 1. Paid utilities expenses for the factory, $7,000 1. Allocated manufacturing overhead for January 2015 1. Cost of completed furniture, $80,000 1. Sold furniture for $200,000 on account. The cost of the furniture sold was $105,000 1. Adjusted manufacturing overhead for the over-allocated or under-allocated overhead cost. Requirement: Journalize Oral’s transactions for the month of January 2015. (20 points) 3. Cake Delight Company has two departments: (1) Baking Department and (2) Icing Department. Direct material is added at the beginning of production and conversion costs are added throughout the process. Data from the month of April for the Baking Department are as follows: UNITS: Beginning Work in Process 3 cakes Cakes started in the month of April52 cakes Completed cakes ready to be transferred out50 cakes Ending Work in Process (60% completed) 5 cakes COSTS: Beginning Work in Process ($60 for Direct Material & $30 for Conversion Costs)$90 Direct Material cost during the month of April$1,040 Direct Labour cost during the month of April$400 Manufacturing Overhead cost during the month of April$130 Requirements: 1. Draw the timeline for the Baking Department. (4 points) 2. Use the timeline to help you compute the Baking Department’s equivalent units for Direct Material and for Conversion Costs. (4 points) 3. Compute Conversion Costs (2 points) 4. Compute the Costs Per Unit for Direct Material and Conversion Costs in the Baking Department (4 points) 5. Compute total cost to bake one cake (2 points) 6. Compute the Total Costs to be transferred out to the Icing Department and the Total Costs that would remain in the Baking Department. (4 points) 4. Complete Protection Company sells hand sanitizers. They usually sell one bottle for $24 and buy it for $10 each. Their fixed costs is $35,000 once they sell between 0 to 20,000 bottles. If they purchase and sell more than 20,000 bottles, the fixed costs would increase to $40,000. Requirements: a) Calculate the number of hand sanitizer bottles that needs to be sold in order to breakeven. (3 points) b) Calculate the number of hand sanitizer bottles that needs to be sold in units in order to make an operating profit of $98,000. (3 points) c) Due to COVID-19, there is a large demand for hand sanitizer and the selling price went up to $60 and the price to purchase the bottle also increased to $20 each. They also anticipate that the number of bottles sold would be above 20,000. What is the new breakeven in dollars? (4 points) d) Complete Protection Company is now considering selling gloves along with hand sanitizers. They anticipate that the gloves would cost $40 per box and they can sell it for $75 each. It is expected that for every box of gloves they sell, they would also sell 4 hand sanitizers. What would be the breakeven in units for each product if fixed costs is expected to increase to $50,000? (10 points) 5. Requirements: 1. Calculate the activity rate for each activity. (4 points) 2. Using the Activity Based Costing Method, determine the manufacturing overhead cost to be assigned to each product. (8 points) 3. Calculate the manufacturing cost per unit for both Products Y & Z if the direct material per unit is $20 and direct labour per unit is $50. (4 points) 4. If Hickory Company want to add a 30% mark-up on the manufacturing costs, how much would they sell each product for? (4 points)