5.22 Equivalent units; FIFO and weighted average: manufacturer
Glass Creations Ltd manufactures decorative glass bowls. The firm employs a process costing
[L01] . . . . . . .
system for Its manufacturing operations. All direct materials are added at the b
Bad Debts Direct Write-Off and Allowance Methods
EchoGnomics is a wholesaler of garden figurines, selling mainly to
independent gardening shops in Australia. All sales are conducted on a
30-day credit basis and no early payment or cash dis-
E3.25: Account classification method; manufacturer
Hahndorf Gourmet Meats Ltd produces fine German sausages in the Adelaide Hills. The
company's accountant used the account classification method to compile the following
SLIP SHOD LTD
A. Calculate the break-even point.
B. Calculate the number of pairs that must be sold to achieve a profit of $63 000. What is the
margin for safety at this sales level?
C. Would it be better to sell 16 000
The relationship between cost and activity is called:
A cost that has both a fixed and variable component is called a:
E6.30:Process costing: airport check-ins
Airport Services Ltd operates the check-in facilities at domestic and international terminals
throughout Australia. During the month of April the following costs were incurred as passengers
TUTORIAL SOLUTIONS CHAPTER 8
With respect to the proprietary theory:
(a) What is the objective of the firm?
(b) How important is the concept of stewardship?
(c) What is the relationship between assets/liabilities and the owner?
(d) How would
Chapter 9: Revenue
1. What is revenue? Is it an object or an event?
Revenue is defined in AASB 118 (paragraph 7) as follows:
Revenue is the gross inflow of economic benefits during the period arising
in the course of the ordinary activities of a
TUTORIAL SOLUTIONS CHAPTER 7
What attributes must something possess in order to be defined as an asset? Why?
For something to be defined as an asset, it must possess the following attributes:
future economic benefits or services will flow to
Bad Debts Direct Write-off and Allowance
Assume that EchoGnomics uses the direct write-off method of accounting for bad debts:
1. Show the general journal entry required to write-off the bad debts.
2. What amo