ACCG70011

Finance and Managerial Accounting

Assignment #4

Complete the problems listed below.

Chapter 9

Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires seven kilograms of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter - July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements:

1. The finished goods inventory on hand at the end of each month must be equal to 5 000 units plus 40% of next month's sales. The finished goods inventory on June 30 is budgeted to be 29 000 units.
2. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. On June 30, the raw materials inventory for material A135 is budgeted to be 88,200 kilograms.
3. The company maintains no work in process inventories

A sales budget for Playclay for the last six months of the year follows:

	Budgeted Sales in Units
July	60,000
August	80,000
September	40,000
October	45,000
November	55,000
December	30,000

Required:

1. a production budget for Playclay for the months July, August, September, and October. - 12 Marks
2. a budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total. - 12 Marks

Chapter 10

Sleepless Cola Company (SCC), a company that produces a number of different carbonated caffeinated beverages. The management of SCC has gathered data for one of its product lines, Twitch Cola, and wants to complete materials variances. After water, the main ingredient is sugar. For the most recent batch, SCC purchased and used 7400 Kg of sugar, at a price of $4.90 per Kg. The standards call for 6300 Kg and paying $3.25 per Kg.

Using this information, calculate the following

1. Materials Price Variance - 2 Marks
2. Materials Usage Variance - 2 Marks

In addition to the materials variances, the management at SCC would like to determine labour variances for Twitch Cola. For this batch of Twitch Cola, SCC used 1600 labour hours paying a total of $20800. The Standard Hours allowed is 1750. The HR Department has determined that the Standard Labour Rate should be $13.50 per hour.

Using the above information calculate the following:

1. The Labour Rate Variance - 2 Marks
2. The Labour Efficiency Variance - 2 Marks

Correct answers for Chapter 10 must state whether the Variance is Favourable or Unfavourable. To receive full credit your answer must be labeled as such.

For example: An answer such as "- $4500" will not be given full credit, even if the number is correct. The same number shown as "$4500 Favourable" would receive full marks.

Chapter 11

Procrastinatrix is a software company that develops games for popular mobile devices. Selected data for two of their most successful apps (Time Wasters 4 and Dilly Dally - The Return) are listed below.

	Time Wasters 4	Dilly Dally - The Return	Total
Sales	$25,000,000	$43,000,000	$68,000,000
Operating Income	$1,200,000	$2,600,000	$3,800,000
Average Operating Assets	$3,000,000	$4,500,000	$7,500,000
Required Rate of Return	22%	22%

For both complete the following:

1. The Margin - 2 marks
2. The Turnover - 2 marks
3. The Return on Investment - 2 marks
4. The Residual Income - 2 marks

Make sure to show ALL work! A majority of the marks are based on the work, not the final answer. To receive full credit for each question, you must show your work, and round your final answers to 2 decimal points correctly.

Assignment is dueAugust 8th, 2022 at 11:59PM - Midnight as a Microsoft Word or Excel file in the drop box located on SLATE only. Late assignments are subject to a 10% per day penalty.