1) Wonderpillow is the trading name used by Alan The business has long term liabilities of 100 000, non current assets of 289 770 and current assets of 124 400 The total of current liabilities less current assets is 3 340 What is the total for equity 2) Ben is a sole trader selling candles from a chain of 18 retail shops Shortly after Christmas, he is comparing his businesss performance in December with that of the leading candle retailers Recently published statistics show that the leading retailers made 26 2 gross profit and 9 8 net profit in the month Bens opening inventory was 4 200 200 and closing inventory was 1 230 400 He purchased inventory valued at 17 206 300 during December and his revenue was 26 500 000 On the basis of his actual cost of sales in December, what would Bens revenue have been, to the nearest , if he had achieved the same gross profit margin as that of the leading candles retailers 3) Which of the following statements about depreciation are correct A Depreciation is a way of allocating the cost of a non current asset to the accounting periods that benefit from its use B Depreciation helps to set aside sufficient cash to buy a replacement once the asset is worn out 4) Beata buys a new notebook on 1 July 2014 for 1872 She does not expect it to have any residual value in four years time, at which point she plans to replace it She depreciates such assets on the straight line basis, charging depreciation for each full month of ownership What is the carrying amount (the cost of an asset less accumulated depreciation) of the till at Beatas year end on 31 October 2015 5) Kik Greg Limited produces computer controlled knitting machines It incurs the following production costs in the month of March 20X3 Knitting machine components 3 630 Factory rental costs 1 664 Electricity factory 536 Machine operators wages 6 620 Sundry direct materials costs 1 326 Depreciation of factory machinery 862 Sundry factory costs 937 Circuit boards for knitting machines 1 236 Factory cleaning 212 W0hat is the total of production overheads for the month of March 20X3 6) Jim Judith Limited manufactures a standard model of hair straightener The selling price of each straightener is 35 Variable costs of manufacture are 9 80 During its 20X7 financial year the company expects to incur fixed production costs of 78 000 and fixed selling and administration overheads of 38 000 What is the expected break even point in sales value in 20X7 (working to nearest whole unit and ) 7) Sandy Key Limited applies cost based pricing to its range of products A new product, the Miracle Stone, is due to start production and the directors have met to determine a selling price for it The new products cost card includes the following details for each unit of Miracle Stone Direct materials 12 70 Direct labour 10 50 Direct expenses 2 00 Production overhead (absorbed using direct labour hours) 13 90 Total cost 39 10 The directors use variable cost based pricing, applying a standard mark up of 36 What is the selling price of each Miracle Stone unit (to the nearest penny) 8) Which of the following statements about contribution are correct A If contribution is a positive figure it contributes, first, to covering fixed costs, and second, to profit B In order to calculate contribution it is necessary first to split costs into fixed and variable 9) Which of the following statements are correct A Financial reporting is concerned with the provision of information to interested parties outside the business B Management accounting is concerned with the provision of information for use within the business for decision making and control 10) De Luca Britti plc is listed on the main market of the London Stock Exchange The company has 2 000 000 ordinary shares in issue, with a nominal value of 50p per share Shares in the company currently trade at 85p, but the average price of one share over the last year has been 95p The companys directors are planning a rights issue to take place next month at a price of 90p What is the companys market capitalization

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

1) Wonderpillow is the trading name used by Alan. The business has long-term liabilities of 100 000, non-current assets of 289 770 and current assets

1) Wonderpillow is the trading name used by Alan. The business has long-term liabilities of 100 000, non-current assets of 289 770 and current assets of 124 400. The total of current liabilities less current assets is 3 340. What is the total for equity?

2) Ben is a sole trader selling candles from a chain of 18 retail shops. Shortly after Christmas, he is comparing his businesss performance in December with that of the leading candle retailers. Recently published statistics show that the leading retailers made 26.2% gross profit and 9.8% net profit in the month.

Bens opening inventory was 4 200 200 and closing inventory was 1 230 400. He purchased inventory valued at 17 206 300 during December and his revenue was 26 500 000. On the basis of his actual cost of sales in December, what would Bens revenue have been, to the nearest , if he had achieved the same gross profit margin as that of the leading candles retailers?

3) Which of the following statements about depreciation are correct?

A. Depreciation is a way of allocating the cost of a non-current asset to the accounting periods that benefit from its use. B. Depreciation helps to set aside sufficient cash to buy a replacement once the asset is worn out.

4) Beata buys a new notebook on 1 July 2014 for 1872. She does not expect it to have any residual value in four years time, at which point she plans to replace it. She depreciates such assets on the straight-line basis, charging depreciation for each full month of ownership. What is the carrying amount (the cost of an asset less accumulated depreciation) of the till at Beatas year end on 31 October 2015?

5) Kik & Greg Limited produces computer-controlled knitting machines. It incurs the following production costs in the month of March 20X3:


Knitting machine components	3 630
Factory rental costs	1 664
Electricity factory	536
Machine operators wages	6 620
Sundry direct materials costs	1 326
Depreciation of factory machinery	862
Sundry factory costs	937
Circuit boards for knitting machines	1 236
Factory cleaning	212

W0hat is the total of production overheads for the month of March 20X3?

6) Jim & Judith Limited manufactures a standard model of hair straightener. The selling price of each straightener is 35. Variable costs of manufacture are 9.80. During its 20X7 financial year the company expects to incur fixed production costs of 78 000 and fixed selling and administration overheads of 38 000.

What is the expected break-even point in sales value in 20X7 (working to nearest whole unit and )?

7) Sandy Key Limited applies cost-based pricing to its range of products. A new product, the Miracle Stone, is due to start production and the directors have met to determine a selling price for it.

The new products cost card includes the following details for each unit of Miracle Stone:


Direct materials	12.70
Direct labour	10.50
Direct expenses	2.00
Production overhead (absorbed using direct labour hours)	13.90
Total cost	39.10

The directors use variable cost-based pricing, applying a standard mark up of 36%.

What is the selling price of each Miracle Stone unit (to the nearest penny)?

8) Which of the following statements about contribution are correct? A. If contribution is a positive figure it contributes, first, to covering fixed costs, and second, to profit. B. In order to calculate contribution it is necessary first to split costs into fixed and variable

9) Which of the following statements are correct? A. Financial reporting is concerned with the provision of information to interested parties outside the business. B. Management accounting is concerned with the provision of information for use within the business for decision-making and control.

10) De Luca & Britti plc is listed on the main market of the London Stock Exchange. The company has 2 000 000 ordinary shares in issue, with a nominal value of 50p per share. Shares in the company currently trade at 85p, but the average price of one share over the last year has been 95p. The companys directors are planning a rights issue to take place next month at a price of 90p. What is the companys market capitalization?