ACT502 Assignment Semester 2, 2019 - 140 Marks
ACT502 Assignment, Semester 2, 2019 Assignment 140 Marks - Weight 30% Due
This assignment consists of two questions. Please construct your answer in the worksheet in Excel file and upload using the submission point for the assignment on Learnline. You must submit ONE file only. The file MUST be in Excel format. No word document will be accepted. Create text box in your Excel file to provide answers to question two. Submitted file MUST be saved in the format: ID_Lastname_Firstname (e.g S876980_Smith_Jack). Marks will be given for the quality of your calculation formats (evident from the formulas on the Excel spreadsheet) even if your final calculations are not correct. Show your calculations clearly.
Assignments submitted via e-mail will NOT be accepted. Your student ID and name MUST be included at the top of the first Excel sheet. Not need to complete a university cover sheet. Do not include the actual question in your submitted assignment. You need to only include your answers to the questions. The due date and time is noted in the unit information document as well as above. Sufficient time is given to do this assignment so, do not leave it to the last minute. Late assignments will be penalised. It is your responsibility to ensure you factor in any time difference between Darwin and other locations when submitting your assignment.
Ethics: This is not a group assignment, it is an individual assessment. Your solutions will likely be different from other students. If portions of your assignment are copied or very close to copying, all parties will be penalised for copying. Copying would be considered plagiarism and CDU has restrict policies in this regard (please see for details).
Question One (100 Marks)
Comfort Furniture Pty Ltd manufactures and distributes stylish and practical furniture for the hospitality industry in Australia. The company’s balance sheet at December 31, 2016 is shown below:
| Assets | Amount |
|---|---|
| Current Assets | |
| Cash | $7,500 |
| Accounts receivable | $73,500 |
| Finished goods inventory (1500 units) | $24,000 |
| Total current assets | $105,000 |
| Property, plant and equipment | |
| Equipment | $40,000 |
| Less: Accumulated depreciation | $10,000 |
| Total Property, plant and equipment | $30,000 |
| Total Assets | $135,000 |
| Liabilities and Stockholders’ Equity | |
| Liabilities | |
| Notes payable | $25,000 |
| Accounts payable | $45,000 |
| Total Liabilities | $70,000 |
| Stockholders’ Equity | |
| Common stock | $40,000 |
| Retained earnings | $25,000 |
| Total Stockholders’ Equity | $65,000 |
| Total liabilities and stockholders’ equity | $135,000 |
Budgeted data for the year 2017 includes the following:
- Projected total sales: $256,000 (8,000 units at $32 each)
- Cost of goods manufactured, direct materials used, direct labour, manufacturing overhead, selling & admin expenses, interest, taxes, dividends, and debt payments are detailed in the provided budget data.
- To meet sales requirements and maintain 2,500 units of finished goods inventory at year-end, production is budgeted at 9,000 units, with total unit cost expected at $18.
- The company applies FIFO inventory costing method.
- Interest expense, income taxes, and dividends are scheduled as outlined.
- Cash balance is projected at $5,880 at December 31, 2017.
Required:
- Prepare the budgeted statement of cost of goods sold for 2017.
- Prepare the budgeted multiple-step income statement for 2017.
- Prepare the retained earnings statement for 2017.
- Prepare the budgeted classified balance sheet as of December 31, 2017.
- Prepare the proof of the budgeted cash balance at December 31, 2017.
Only provide answers for the above five requirements. Do not include any additional budgets in your answer.
Question Two (40 Marks)
- Discuss all the primary benefits of budgeting to the CEO of Comfort Furniture Pty Ltd. Provide detailed information. (25 marks)
- Explain how a Comfort Furniture’s budget report for the second quarter may differ from the first quarter. Provide a detailed explanation. (15 marks)